Bangladesh Nearing China in Terms of Cotton Trade

According to the latest USDA Cotton World Markets and Trade report, Bangladesh's cotton consumption is expected to rise by 800,000 bales to 8 million in 2023-24, driven by burgeoning apparel exports. The country is on the verge of overtaking China as the world's largest cotton apparel exporter, with increased demand expected to drive cotton consumption even higher.

Almost all cotton yarn, which accounts for the majority of the country's cotton consumption, is sold domestically to Bangladesh's thriving fabric and apparel industries. Apparel exports have been critical for Bangladesh's economic growth and currency stabilisation by obtaining US dollars through foreign sales.

In accordance with the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), apparel accounted for more than 80% of the country's total exports in fiscal 2023 (FY23) (June 2022-July 2023), totaling approximately $47 billion. This figure is more than double that of a decade ago and exceeds the previous year's record, reflecting global importers' growing preference for Bangladesh's cotton products.

Knit apparel exports have been critical to this growth, nearly tripling in value over the last decade. Local textile mills meet about 85% of the demand for knit fabrics and about 40% of the demand for woven fabric, which is mostly imported from China. According to the USDA, knitted cotton shirts and sweaters have been the major products contributing to the recent record values.