[🇧🇩] Textile & RMG Industry of Bangladesh

[Saif]

Textile millers oppose scrapping 30% value-addition rule

Textile millers have urged the government not to withdraw the 30 percent value-addition requirement on imports of garment raw materials such as yarn, warning that the move could harm the domestic primary textile sector.

www.thedailystar.net

Textile millers oppose scrapping 30% value-addition rule

Star Business Report

Textile millers have urged the government not to withdraw the 30 percent value-addition requirement on imports of garment raw materials such as yarn, warning that the move could harm the domestic primary textile sector.

The withdrawal would encourage garment exporters to import yarn instead of sourcing it locally, potentially flooding the domestic market with imported products, they said.

In its proposed budget for FY2026-27, the government has proposed scrapping the 30 percent value-addition requirement in the domestic market to facilitate business operations.

If implemented, the measure could undermine the primary textile sector, which has attracted investments of around $23 billion, said Showkat Aziz Russell, president of the Bangladesh Textile Mills Association (BTMA), at a press conference held at the Gulshan Club in Dhaka yesterday.

He said the proposal runs counter to efforts to preserve the country’s competitiveness and sustain local industry ahead of Bangladesh’s graduation from the Least Developed Country (LDC) category.

Citing various studies, Russell said Bangladesh could lose $17.5 billion in exports, mainly apparel shipments, following LDC graduation. He also said that 114 of the 234 spinning mills owned by BTMA members had shut down since 2019.

The remaining mills are operating at only 60 percent to 70 percent of capacity due to inadequate gas supplies and the growing dominance of lower-cost Indian yarn in the domestic market, he added.

According to BTMA data, imports of Indian cotton yarn rose 22.07 percent year-on-year to $1.79 billion in FY2024-25, with import volumes reaching 556.12 million kilograms.

In FY2023-24, imports of Indian cotton yarn stood at $1.48 billion, with volumes of 455.57 million kilograms, registering annual growth of 1.04 percent, the association said.

Russell said Indian suppliers are able to offer yarn at lower prices because of extensive government support.

He said the Indian government also provides a 15 percent capital investment subsidy, an 8 percent interest subsidy, infrastructure support, and 15 percent assistance for technology upgradation and modernisation.

Another concern is the risk of supply disruptions, he said, noting that Indian exporters may prioritise other markets without prior notice.

Russell cited a recent instance when India increased yarn exports to China, leaving Bangladeshi importers facing shortages and higher prices as local demand surged.

In the post-LDC era, Bangladesh may need to meet double-transformation requirements to retain trade benefits, which would require greater use of locally produced yarn, he said.

Therefore, the capacity of domestic spinning mills and the broader primary textile sector should not be reduced, particularly when the country needs to strengthen preparations for LDC graduation, he added.

Russell also urged the government to reduce the corporate tax rate for primary textile mills to 12 percent from the current 27.5 percent and maintain the rate until 2030 to attract more foreign direct investment.

He argued that the existing tax rate is discriminatory, as export-oriented non-green garment factories are taxed at 12 percent, while green garment factories enjoy a 10 percent rate.

The reduced 15 percent tax rate previously enjoyed by primary textile mills expired on June 30, 2025, after being introduced in 2015.​

 

[Saif]

BGMEA proposes phased ZLD implementation for apparel sector

The apparel apex body BGMEA on Wednesday proposed a gradual and performance-based roadmap for implementing zero liquid discharge (ZLD) in the ready-made garment sector instead of the existing mandatory commitment. The ZLD is an advanced water treatment process designed to eliminate liquid waste fr

thefinancialexpress.com.bd

BGMEA proposes phased ZLD implementation for apparel sector

FE ONLINE REPORT

Published :
Jun 24, 2026 20:36
Updated :
Jun 24, 2026 20:36

The apparel apex body BGMEA on Wednesday proposed a gradual and performance-based roadmap for implementing zero liquid discharge (ZLD) in the ready-made garment sector instead of the existing mandatory commitment.

The ZLD is an advanced water treatment process designed to eliminate liquid waste from industrial operations.

The BGMEA (Bangladesh Garment Manufacturers and Exporters Association) made the proposal when a delegation led by its President Mahmud Hasan Khan met Environment, Forest and Climate Change Minister Abdul Awal Mintoo at the latter’s secretariat office in Dhaka city.

Former Bangladesh Textile Mills Association President A Matin Chowdhury, BGMEA Director Nafis-ud-Doula and Kingsley CEO Md Ashiqur Rahman, among others, were present at the meeting.

The association also demanded the formulation of specific sustainability guidelines for water conservation and reuse, financial incentives such as VAT and duty exemptions on ZLD equipment and the launch of a specialised ‘ZLD-window’ under the Green Transformation Fund of Bangladesh Bank.

The meeting also discussed the need to align environmental compliance with the realities of the ready-made garments and sustainable textile sector.

Reiterating their commitment to ensuring a sustainable environment, the sector leaders highlighted several regulatory complexities and obstacles, including technical challenges related to the 'Environmental Protection Rules, 2023'.

The delegation noted that the current ETP colour parameters are technically very difficult to achieve with the existing infrastructure and requested that a realistic and science-based standard be set.

To enhance administrative transparency, the delegation suggested introducing a mirror testing mechanism for environmental sampling and systematically adopting a risk-based, long-term environmental clearance renewal system for compliant factories.

The BGMEA also urged the government to formulate rules under the Forest Ordinance (2026) quickly to remove uncertainty over land use in industrial areas.

The meeting also highlighted the need to set tolerance limits for fluctuations in environmental parameters due to extreme weather conditions and to ensure a balanced air quality assessment, taking external sources of pollution into account.

Acknowledging the important contribution of the readymade garment sector to the national economy, the minister assured the delegation of addressing the issues while balancing the needs of the industry with the goal of environmental conservation.​

 

[Saif]

Direct US cotton sourcing delivers savings for BD mills

Bangladeshi spinning mills are increasingly turning to direct procurement of raw cotton from US farmers, bypassing traditional international trading houses in a move expected to lower costs for local manufacturers while ensuring better returns for American growers.Demographics The initiative, led

thefinancialexpress.com.bd

Direct US cotton sourcing delivers savings for BD mills

Jasim Uddin

Published :
Jul 04, 2026 08:03
Updated :
Jul 04, 2026 08:03

A denim producing factory in Bangladesh — Photo courtesy: hameemdenim.com

Bangladeshi spinning mills are increasingly turning to direct procurement of raw cotton from US farmers, bypassing traditional international trading houses in a move expected to lower costs for local manufacturers while ensuring better returns for American growers.Demographics

The initiative, led by a new US-based trade platform named AmeriBangla, has already facilitated direct cotton purchases by three Bangladeshi textile companies, while another 19 spinning mills are in talks to join the programme.

AmeriBangla Chief Executive Officer Aswar Rahman says the company has spent more than a year building a direct supply chain linking Bangladeshi mills with US cotton growers.

"We now have a strong network of around 900 farmers across Texas, Georgia, Arizona, and Oklahoma, while our broader network covers farmers in 17 US states," he tells The Financial Express.

According to him, Bangladeshi spinning mills can save several US cents per kilogramme of raw cotton by sourcing directly from farmers instead of relying on the conventional trading system.

At present, cotton imports typically pass through at least nine intermediaries before reaching Bangladeshi mills.

"Through AmeriBangla, we are creating a transparent supply chain connecting American farmers, ginners, and Bangladeshi spinning mills directly. This ensures fair pricing for both producers and buyers while eliminating unnecessary middlemen," he says.

Rahman says the US cotton trade is largely dominated by European multinational trading companies, leaving farmers with little bargaining power.

"It is a win-win model. American farmers receive better prices than they do from multinational traders, while Bangladeshi mills benefit from lower procurement costs by cutting out multiple intermediaries," he explains.

He notes that many US cotton farmers have been operating at a loss for the past five to six years under the existing marketing system.

"Those who have started doing business with us are returning to profitability with better margins," he adds.

Rahman believes the initiative could evolve into a strategic partnership between Bangladesh's apparel industry and American cotton growers.

"If Bangladesh significantly increases its use of US cotton, we will build stronger relationships with American farmers, who have real influence in Congress. Such a partnership could further strengthen Bangladesh's trade position in the United States while opening a new chapter in bilateral trade," he says.

He also highlights challenges in securing export finance in the United States.

"The US government is keen to promote exports through financing schemes. However, current regulations generally require exporters to have at least two years of experience and an annual turnover of around $6 million," he adds.

Rahman expresses hope that the US authorities would consider extending greater support to emerging exporters and trading platforms.

He also observes that export financing remains a relatively weak area in the US banking sector.

"Many banks, particularly in New York, do not even have dedicated export departments. During discussions, officials often realise only later that we are talking about exporting goods from the United States," he says.

He adds that AmeriBangla initially struggled because of the limited infrastructure available to support small and medium-sized agricultural exporters in the US, but eventually succeeded in establishing the required network.

Among the early adopters of the model is Envoy Textiles Ltd, one of Bangladesh's leading denim textile manufacturers.

Rahman says Envoy imported nearly 60 tonnes of cotton from US farmers through AmeriBangla last year.

Talking to The Financial Express, Kutubuddin Ahmed, founder and chairman of Envoy Textiles, says the company has already experienced the benefits of direct sourcing.

"We are importing cotton directly from US farmers through Ameri Bangla, and it has proved beneficial for both sides," he says.

He expresses optimism that Envoy would significantly increase its direct cotton purchases this year as the sourcing model expands.​

 

[Saif]

https://www.newagebd.net/post/trade-commerce/305427/non-rmg-exports-remain-low-for-years

Non-RMG exports remain low for years
Exporters blame policy gaps, limited diversification

Saddam Hossain 08 July, 2026, 23:51

Bangladesh’s exports continue to be heavily dependent on the readymade garment sector, with shipments of non-RMG products remaining stagnant over the years despite repeated calls for diversification.

Exporters attribute the stagnation to inadequate and inconsistent policy support, weak demand in key overseas markets amid economic challenges, and the country’s limited progress in expanding its export basket.

According to the Export Promotion Bureau, non-RMG sectors have accounted for only 17 per cent to 19 per cent of Bangladesh’s total export earnings over the past five years, with little structural change year after year.

In the financial year 2025-26, total export earnings slipped marginally to $48 billion, while RMG earnings fell further to $38.7 billion, down 1.64 per cent year-on-year, accounting for about 81 per cent of total earnings.

The non-RMG sector’s share was only around 19 per cent, which exporters and experts labelled a ‘risky economic model’.

The major non-RMG items, including leather and leather goods, jute and jute goods, agricultural products, home textiles, and engineering products, generated $1.22 billion, $884 million, $975 million, $928 million, and $652 million, respectively.

‘The government has always been working on export diversification,’ EPB vice-chairman Mohammad Hasan Arif told New Age.

However, Bangladesh’s export economy is built on a risky model, where only RMG has grown. The gap between RMG and other products is now so wide that scaling up the rest cannot happen overnight, he added.

Hasan also said several sectors have shown promise at different points but failed to sustain that momentum amid recurring crises.

‘Frozen food once showed promise, but shrimp production has fallen by nearly a third,’ he said, warning that the country›s industrialisation and economic transition remain vulnerable because they rely too heavily on a single product.

Among non-RMG items, only leather and leather goods have consistently crossed the billion-dollar mark in recent years.

The sector earned $797.7 million in FY20, $1.17 billion in FY23, $1.14 billion in FY25, and $1.23 billion in FY26, yet still short of any meaningful breakthrough beyond the billion-dollar range it has occupied, on and off, for years.

Md Nasir Khan, vice-president of the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh, told New Age that the leather sector has remained stuck at around $1 billion in exports for decades due to inadequate government policy support.

‘Despite having domestic raw materials and producing high-quality products, the sector is falling behind because the government wants to keep it as a bonsai tree,’ he said, adding that it has the potential to earn $10 billion by adding up to 90 per cent value from locally sourced raw materials.

Khan said the government’s relocation of tanneries to Savar without proper infrastructure and a fully functional Central Effluent Treatment Plant undermined the sector.

He said leather estate factories cannot export to leading global brands because they lack Leather Working Group certification. ‘We have capable second-generation entrepreneurs. The problems lie in policy and governance failures,’ he said.

Khan also said Bangladesh lacks a unified policy and incentive framework for all export-oriented sectors.

Meanwhile, on Tuesday, commerce minister Khandakar Abdul Muktadir said in parliament that Bangladesh has the potential to earn up to $10 billion annually from leather goods exports.

The country currently utilises only 0.26 per cent of its leather potential. The relocation of tanneries from Hazaribagh to Savar remained incomplete, he said, adding that the government would make the CETP fully functional.

The jute and jute goods sector, once the country’s largest export earner, experienced negative growth for a prolonged period before showing signs of recovery in FY26.

The sector earned $882.35 million in FY20, $911.51 million in FY23, $820.16 million in FY25, and then grew 7.75 per cent to $884 million in FY26 – still below its FY23 level.

‘The global jute market has been under pressure for well over a decade. Bangladesh’s key markets, particularly Syria, Sudan and Iran, have been mired in war and internal turmoil for more than a decade, shrinking orders,’ said Aslam Babul, chairman of the Bangladesh Jute Goods Exporters Association.

Babul said the government›s 2021 decision to shut down all state-owned jute mills also sent a negative signal to global buyers.

‘Private mills alone cannot handle such large bulk orders, so support from state-run mills is essential,’ he said.

Welcoming the current government›s plan to revive closed and loss-making state enterprises through joint ventures, public-private partnerships or leasing, Babul said the mills should be reopened specifically for jute goods production.

‘Jute offers nearly full value addition, and if the mills are handed over to genuine entrepreneurs for that purpose, the sector could regain its lost glory,’ he added.

Farhad Ahmed Akand, chairman of the Bangladesh Jute Association, said farmers were losing interest in jute cultivation because it is time-consuming and costly.

He urged proper implementation of projects to enable farmers to grow jute with less time, water and land.

Agricultural product exports earned $862.06 million in FY20, $827.10 million in FY23, and $988.62 million in FY25 – the sector’s strongest showing in the period – before declining 1.34 per cent to $975 million in FY26.

Kamruzzaman Kamal, director (marketing) at Pran-RFL Group, told New Age, ‘Our entrepreneurs’ export baskets barely contain any globally competitive products, and their target buyers are not global consumers.’

He said exporters largely target the Bangladeshi diaspora with items such as chanachur, chips and mustard oil, which have no global demand, whereas biscuits, fruit drinks and juices – products with genuine global demand – deserve greater innovation and export focus.

‘We are trying to bring in innovation, and it is getting a positive response in the global market,’ he said.

Engineering products earned $529 million in FY20, $495 million in FY23, $535.56 million in FY25, and then posted the sharpest growth among major non-RMG sectors in FY26, rising 21.77 per cent to $652 million.

Abdur Razzaque, former president of the Bangladesh Engineering Industry Owners’ Association, said earlier that the sector needs a dedicated industrial park or zones to establish compliant, global-standard factory units.

He had also called for policy support through the removal of tax and VAT-related issues.

Home textile exports earned $1.13 billion in FY21, $1.09 billion in FY23, $871.57 million in FY25 and rose 6.52 per cent to $928 million in FY26.

EPB’s Hasan Arif said the government is working to support diversification, but entrepreneurs must move beyond the cheap-labour, low-innovation model.

He said policy support, including duty-free raw material imports for non-bonded factories against bank guarantees, would be provided to encourage the shift.

Bangladesh’s non-RMG export sectors have yet to realise their potential primarily because they lack the competitiveness needed to succeed in the global market, said M Masrur Reaz, chairman and chief executive officer of Policy Exchange Bangladesh.

He also said only a handful of firms in each sector are capable of competing internationally, while overall production capacity, technological capability and skills remain weak, preventing these sectors from expanding on a competitive footing.

‘Equal policy support or incentives alone would not be enough to increase non-RMG exports significantly,’ he said, adding that developing export-oriented sectors requires a comprehensive strategy backed by consistent policy support, effective implementation, technology adoption and skills development.

He identified shortcomings at two levels. At the enterprise level, many firms have failed to strengthen their competitiveness through investment in technology, skills, market intelligence and entrepreneurship.

Moreover, at the policy level, Bangladesh has not pursued a coordinated strategy to develop these sectors into globally competitive industries.

Reaz said promising sectors such as agro-processing, leather and footwear face sector-specific constraints, particularly in meeting international standards, compliance and certification requirements.

He also said that facilities such as bonded warehouse access alone would not be sufficient to drive export growth without addressing these structural bottlenecks.

The development of export sectors, he said, depends on a combination of factors, including a supportive regulatory environment, a skilled workforce, technology adoption, productivity, efficient trade policies, trade facilitation, logistics, infrastructure and market access strategies.

‘Without a comprehensive, multi-dimensional sector development plan and effective implementation, Bangladesh would struggle to build globally competitive non-RMG export industries,’ he added.​

 

[Saif]

Bangladesh remains 2nd-largest apparel exporter to US, how do others rank?

In the United States market, Bangladesh maintained its position as the second top exporter of ready-made garments in the first five months of the current year (January-May), despite a decline in its exports. On the other hand, Vietnam, which is at the top in ready-made garment exports...

en.prothomalo.com

Bangladesh remains 2nd-largest apparel exporter to US, how do others rank?

Staff Correspondent
Dhaka
Published: 12 Jul 2026, 19: 26

Workers at a garment factory File photo

Bangladesh has maintained its position in the United States market as the second top exporter of readymade garments in the first five months of the current year (January-May), despite a decline in its exports.

On the other hand, Vietnam, which is at the top in readymade garment exports, increased its export volume.

According to data released by the US Office of Textiles and Apparel (OTEXA), Bangladesh exported 3. 25 billion dollars worth of ready-made garments to the US market in the first five months of this year, which is 8. 1 per cent less compared to the same period last year.

However, this rate of decline in exports is slightly less than the overall contraction in the US ready-made garment import market. This means the decline in demand is the main reason for the drop in Bangladesh's exports.

Meanwhile, competitor Vietnam has solidified its position as the top supplier in the US market. In the first five months of this year, Vietnam exported 6.39 billion dollars worth of ready-made garments, which is 1. 5 per cent more than the same time last year.

According to OTEXA data, US businesses imported 28. 77 billion dollars worth of ready-made garments from January-May, which is 9. 25 per cent less compared to the same period last year. Last year, US businesses imported 31. 71 billion dollars worth of garments during the first five months.

When inquired, Mohammad Hatem, President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Prothom Alo that even though demand in the US market has increased slightly, it has not returned to its previous level. Therefore, there is no significant potential for a sharp increase in exports soon. Mohammad Hatem mentioned that the US is investigating two allegations against Bangladesh and other countries.

There is also concern over the potential imposition of new tariffs after these investigations, which has made buyer companies somewhat cautious about placing orders.

He suggested that effective measures should be taken by the Bangladesh government regarding these two investigations.

Other countries

China, which has long held the top position in the US market, is steadily losing its market share. It is evident that US buyer companies are shifting their business from China to elsewhere due to countermeasures and geopolitical reasons.

In the first five months of the current year, China exported 2. 80 billion dollars' worth of readymade garments, which is 42. 75 per cent less than the same period last year. China's supply, measured by quantity, also decreased by around 30 per cent during this time. Although China is the third top readymade garment exporter at the end of May this year, it was in second place during the same time last year.

Countries like Indonesia and Cambodia are making significant progress in capturing China's lost business. In the first five months of this year, Indonesia and Cambodia's readymade garment exports to the US increased by 5. 49 per cent and 14.9 per cent, respectively. During this time, Indonesia exported 1. 97 billion dollars, and Cambodia exported 1.74 billion dollars worth of ready-made garments.

Another competitor of Bangladesh in this market, India, saw its ready-made garment exports fall by 26.37 per cent. In the first five months of this year, India exported 1.79 billion dollars' worth of ready-made garments.

With its exports decreasing by nearly 26 per cent, India dropped from fourth to fifth place in the ready-made garment export market. Indonesia secured the fourth position, and Cambodia is in sixth place.

Although demand for ready-made garments was low in the US market at the beginning of the year, there was a slight positive trend observed in May.

According to OTEXA data, US overall imports increased by 2. 77 per cent that month.

During this time, Bangladesh's readymade garment exports increased by about 6 per cent. However, China's exports increased by 18 per cent, Indonesia's by 23 per cent, and Cambodia's by 18 per cent.

Selling prices

Despite a general decline in demand, the value of Bangladesh's ready-made garment exports in the US market remained relatively stable in the first five months of this year.

During the January-May period, the average unit price of ready-made garments exported by Bangladesh was 2. 99 dollars, which is 2 per cent lower than the same period last year. Meanwhile, the global average price was 3.14 dollars.

In this aspect, competitor countries like China had an average unit price of 1.43 dollars, Pakistan 2. 59 dollars, and Cambodia 2. 91 dollars for their exported ready-made garments, which are lower than Bangladesh's.

On the other hand, Vietnam had an average unit price of 3. 39 dollars, India 3. 41 dollars, Honduras 3. 64 dollars, Indonesia 3. 77 dollars, and Mexico 4. 45 dollars per unit for their exported readymade garments, which are higher than that of Bangladesh.​

 

[Saif]

https://www.newagebd.net/post/apparel/305921/govt-raises-textile-export-incentive-despite-revenue-strain

Govt raises textile export incentive despite revenue strain
Staff Correspondent 12 July, 2026, 23:52

A file photo shows workers at a textile mill on the outskirts of Dhaka. | New Age photo

The government has increased the cash incentive for export-oriented textile manufacturers to 5 per cent from 1.5 per cent, despite mounting fiscal pressure from weak revenue collection and longstanding concerns over misuse of export incentive schemes.

Bangladesh Bank issued a circular on Sunday, raising the alternative cash assistance provided to exporters who do not use bonded warehouse or duty drawback facilities.

On Thursday, the finance ministry issued a directive to the Bangladesh Bank in this regard. Sciencetechnology reporting

Under the revised policy, exporters will receive a 5 per cent cash incentive for the 2026-27 fiscal year, up from 1.5 per cent previously.

To qualify, exporters, including members of the Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association and other recognised trade bodies, must submit documentary evidence proving that they sourced raw materials, particularly yarn and fabrics, from domestic producers before claiming the incentive.

The move is intended to encourage greater use of locally produced textile inputs, increase domestic value addition and strengthen backward linkage industries, particularly spinning and weaving mills that supply the country’s readymade garment sector.

Bangladesh is the world’s second-largest apparel exporter after China, with garments accounting for more than 80 per cent of the country’s export earnings.

Industry leaders have argued that higher incentives are necessary to maintain the competitiveness of domestic textile producers as Bangladesh prepares for graduation from the UN’s least developed country category.

The incentive, however, comes at a time when the government is facing persistent revenue shortfalls and widening fiscal pressure, raising questions over the sustainability and effectiveness of expanding cash support programmes.

The latest decision also reverses a series of reductions introduced over the past two years as part of Bangladesh’s LDC graduation strategy.

Exporters using locally produced yarn previously received a 4 per cent cash incentive, which was reduced to 3 per cent in January 2024 and further cut to 1.5 per cent six months later.

The circular said the enhanced incentive would replace the bonded warehouse and duty drawback facilities available to eligible exporters.

Under the bonded warehouse system, exporters can import raw materials without paying import duties if the materials are used to produce export goods.

The duty drawback scheme, meanwhile, refunds import duties after exports are completed.

The cash incentive is offered as an alternative to those facilities.

Economists, however, said stronger monitoring would be essential to ensure the incentive achieves its intended objective.

Export incentive programmes have long faced allegations that some exporters misuse the facilities by submitting inflated export values, using fabricated export contracts or manipulating documentation to claim higher subsidies than they deserve.​

 

[Saif]

https://www.newagebd.net/post/apparel/305919/bangladesh-likely-to-import-76m-bales-of-cotton-in-my27

Bangladesh likely to import 7.6m bales of cotton in MY27
Staff Correspondent 12 July, 2026, 23:50

Female workers produce cotton from imported artificial fibre at a factory at Kamrangir Char in the capital recently. | Sony Ramani Bangladeshnews updates

Bangladesh may import 7.6 million bales of cotton in the marketing year 2026-27, starting on August 1, according to a projection by the United States Department of Agriculture.

In its July report on ‘Cotton: World Market and Trade’, the USDA left unchanged its projection of Bangladesh’s cotton imports at 7.6 million bales, as in the June report, which had previously forecast 7.8 million bales.

The USDA slashed its projection of Bangladesh’s cotton imports due to lower demand in June.

The USDA also slashed its projection of Bangladesh’s cotton imports to 7.4 million bales in the ongoing MY26, ending this month, from its earlier projection of 7.7 million bales due to lower consumption.

In April of this year, in its report titled ‘Cotton and Products Annual: Bangladesh’, the USDA lowered its forecast on Bangladesh’s cotton imports to 7.7 million bales for MY26 from its earlier projection of 7.9 million bales due to persistent energy supply shortages.

The USDA also warned that additional factors, including logistical disruptions and broader economic instability, could further weigh on imports.

In March, the agency had projected Bangladesh’s cotton imports at 7.9 million bales, revising down from the January projection of 8 million bales.

The report also stated that imports are expected to decline due to disruptions in yarn production and weaker demand in the ready-made garment sector.

Bangladesh, the world’s largest cotton importer and second-largest RMG exporter, might face a prolonged recovery before returning to peak operations and optimal lint utilisation, the USDA said.

Data showed that in the 2024–25 marketing year, Bangladesh imported 8.05 million bales of cotton, up from 7.57 million bales in MY24 and 7 million bales in MY23.

In its global outlook for FY27, the report stated that Global production might be up by 1.2 million bales to 117.3 million on larger crops in Brazil, Turkey, the US, and Uzbekistan.

Surpassing Bangladesh, Vietnam might import the highest amount of cotton in MY27, reaching 8 million bales, while China’s import could stand at 7 million bales, Pakistan’s at 5 million bales, and India’s at 2.5 million bales.

Although China, India, and Pakistan are among world’s top five cotton producers.

According to the USDA, Brazil is currently Bangladesh’s largest single cotton supplier, surpassing India, and West Africa remained the primary source region.

Bangladesh’s downward revision is reflected in the negative growth in the country’s RMG exports in the financial year 2025-26, largely due to weak global demand and ongoing geopolitical tensions.

According to the Export Promotion Bureau, Bangladesh’s RMG exports stood at $38.7 billion during FY26, marking a 1.64 per cent decline from $39.35 billion in the same period of the previous year.

During this time, Bangladesh witnessed negative growth in most of its export destinations.

The USDA estimated Bangladesh’s domestic cotton production at around 153,000 bales from 45,000 hectares in MY26, accounting for less than 2 per cent of total consumption. Bangladeshnews updates

Cotton cultivation is concentrated in the western districts of Jashore, Jhenaidah, Kushtia, Chuadanga, Meherpur, and Magura.​