BGMEA President Mahmud Hasan Khan noted that while Bangladesh currently depends heavily on Indian cotton, the new US policy may gradually reduce imports from other suppliers, including Brazil, Australia, India, and several African nations.
Industry leaders also suggest similar shifts. A.K. Azad, Managing Director of Ha-Mim Group, stated that while cotton is primarily sourced from India, Brazil, and African countries, US imports may rise despite higher prices due to better quality and lower wastage.
He further noted that India remains a key source of organic cotton, as alternative suppliers often struggle to meet consistent demand. However, some manufacturers pointed out limitations of US cotton in certain woven products due to fibre characteristics.
Abdullah Hil Naqib, Deputy Managing Director of Team Group, said India and China remain essential suppliers for yarn, fabric, and garment production, though clarity is still needed regarding the scope of US duty exemptions.
Apart from cotton, Bangladeshi manufacturers also depend heavily on Indian yarn due to its lower cost compared to domestic production. Local output is affected by issues such as inconsistent gas supply, which increases manufacturing costs.
Industry representatives also highlight a significant price gap, with imported Indian combed yarn being up to 40 cents per kilogram cheaper than locally produced yarn. Reduced incentives for domestic sourcing have further increased reliance on imports.
According to USITC data, Bangladesh imported yarn worth US$2.9 billion in 2023. Around 56% of total cotton imports (valued at US$1.6 billion) were used for yarn production, with India accounting for roughly one-third of the total cotton supply.
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