Bangladesh’s cotton imports from the United States have experienced a significant decline over the past two years, a trend that has been attributed to the high price and extended lead times associated with US cotton.

Despite the superior quality and lower wastage rates of US cotton, the country’s textile industry has increasingly turned to cheaper alternatives, particularly from India.

According to data from the US Department of Commerce, Bangladesh’s cotton imports from the US totalled $252 million in 2024, marking a 25.51 per cent decrease compared to $337 million in 2023.

In 2022, the imports had reached $469 million. This drop in imports reflects a broader trend of declining purchases over the last two consecutive calendar years.

The textile and garment sector, which represents over 80 per cent of Bangladesh’s total export earnings, is heavily reliant on imported cotton.

Around 12 per cent of the cotton required by this industry traditionally comes from the US. However, the increasing cost and longer delivery times for US cotton have prompted local spinners to look to other sources, with India emerging as a key supplier offering more competitive pricing.

Industry insiders said that despite the challenges posed by US cotton, its premium quality and the reduced wastage rate it offers continue to make it an attractive option for manufacturers.

However, in the face of rising costs and supply chain delays, spinners have opted for more cost-effective and timely alternatives.

This shift has had a notable impact on Bangladesh’s cotton import patterns, as the country adjusts to changing market dynamics and seeks to maintain its competitive edge in the global textile industry.

As the textile sector remains a cornerstone of Bangladesh’s economy, the ongoing decline in cotton imports from the US highlights the evolving challenges facing the industry and its reliance on global supply chains.

Little Star Spinning Mills chairman Khorshed Alam said that the price of US cotton is comparatively higher than Indian cotton, and it also takes longer to receive US cotton.

While Indian cotton is cheaper, he pointed out that its wastage rate is higher.

Alam noted that while cotton from the US or Brazil takes about a month to import, cotton from India is available in the shortest possible time.

He further claimed that knitwear manufacturers, who source yarn from the local market, tend to favour lower-priced cotton, with Indian cotton being their preferred choice in such cases.

MA Rahim Feroz, Vice Chairman of DBL Group, remarked that the demand for cotton and the preferred colour of the fabric can vary from year to year.

He said US cotton is particularly ideal for producing white apparel.

However, he suggested that the demand for white-coloured garments may have decreased over the last two years, which could explain the fall in US cotton imports.

Mahmud Hassan Khan managing director of Rising Group said US cotton price is higher than any other cotton while spinners couldn’t go for long lead time cotton import in recent years due to foreign currency shortage.

He, however, said consumption of US cotton could be increased to offset the latest America’s reciprocal tariff hikes which computation is based on trade deficit.

Bangladesh can seek duty exemption on apparel exports to US which is made of US cotton, he said adding in that case Bangladesh can propose establishing ware house either in Bangladesh or any other transshipment countries.

Fazlee Shamim Ehsan, Executive President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said that the government has recently reduced the Export Development Fund.

As a result, spinners are facing difficulties in importing cotton due to a funding crisis, especially since US cotton takes a longer time to arrive.

He said that the government should engage with stakeholders to develop a roadmap, identifying the barriers that are hindering US cotton imports and exploring ways to address these challenges.

In 2024, Bangladesh imported 7.5 million bales (1 bale equals to roughly 218 kilograms) of cotton, according to Bangladesh Textile Mills Association (BTMA) data.

BTMA data showed that approximately 35 per cent of the country’s cotton requirements are met through imports from Africa.

This is followed by 19 to 20 per cent from India, 14 per cent from Brazil, and 12 per cent from the US.

Additionally, 10 to 12 per cent of cotton is sourced from CIS countries, with the remaining supply coming from other parts of the world.