Report For Import Raw Cotton

Raw Cotton
Introduction:
Cotton lint, the boll of soft material picked from the plant and then separated from the cottonseed
during the ginning process, is one of the most widely used fibers in the world. Cotton is
cultivated in more than 80 countries. The majority of cotton production is spun into yarn and
used in the textile industry to manufacture clothing such as t-shirts and jeans, and home
furnishings such as sheets and towels. However, cotton fiber is also employed in other common
items such as bookbinding, gauze bandages, and fishing nets. Cottonseed oil is used as cooking
oil and in soap; the seed is used as cattle feed; and the fuzz leftover on seeds after ginning, called
cotton linters, is an ingredient in paper and cosmetics.
Bangladesh has a glorious history in textile production. The finest cotton fabric- Moslin once
produced in medieval Bengal was famous throughout the world. However, the production and
trading of Moslin gradually declined during the British rule ultimately resulting to closure of the
industry by early nineteenth century. During Pakistan era, there had been limited effort to
introduce cotton in this part (East Pakistan) with little support for research and development of
the crop and as a consequence cotton remained confined to laboratory until early seventies.
Importance of producing cotton domestically strongly soon after the liberation of the country in
1971 when the supply of raw cotton was suspended from Pakistan.
Cotton Production in Bangladesh:

In Bangladesh, cotton is generally grown as a rain fed crop. Two types of cotton are grown in
Bangladesh namely- i) Upland cotton (Gossypium hirsutum) & ii) Hill cotton (Gossypium
arboreum). American cotton is cultivated in the South western region, Northern region and
Central region covering more than 32 districts out of 61 plain districts of Bangladesh. The course
type Hill cotton, on the other hand is grown in three hill districts. Hill cotton is an indigenous
variety and cultivated in Jhum system. Jhum is a mixed crop cultivated mainly in hill slopes
where more than two crops are seeded in a pit and harvested sequentially. The crops mainly
cultivated in Jhum are Aus rice, Sesame, cotton, Maize, Marpha, Chili, Pumpkin etc. Hill cotton
is used for handloom cloths as well as grown for export. With a total land area suitable for cotton
cultivation estimated 2.42 lakh hectares cotton production is taking place in 35 districts out of 64
districts in Bangladesh. After functioning of CDB the crop year 1997-98 saw the area devoted to
cotton production peaked at a total of 54,429 hectares, or a utilization rate of 22.5% as a result of
gradual expansion of coverage over the past 25 years. During the following crop year 1998-99,
however, cotton areas shrank by 17.6% (11,789 ha) to 42,640 ha due to floods, low price,
degeneration of yield capacity of existing varieties and lack of modern technologies. In crop year
2001-02 nevertheless, cotton areas reportedly started to increase again. American cotton
hectarage, for instance, rose from 29,120 ha to 37,950 ha or an increase of 8,830 ha and
ultimately reached at 41975 ha in the crop year 2006-07, an overall increase of 4,025 ha. One of
the reasons for the limited increase in hectarage is the shift of farmers from cotton production to
other crops. This is because of the declining economic prospect in cotton compared to the profits
derived from growing vegetables, spices, tobacco, flowers, banana and other crops.
The highest domestic cotton production was 93,000 bales in 1997-98 against the total
requirement of 1,20,000 bales for the year 2001-2002 (CDB, 2002 and BTMA, 2002). Cotton
Development Board was targeted 50000 ha cultivation and expected production of 94000 bales
lint in the year of 2007-08. This amount of domestic production of the total could cater only
negligible proportion of the total requirement of the country's textile industry. The textile
industry therefore predominantly depends on imported cotton.
Table of Cotton Production and Consumption in Bangladesh (1971-

2005):
Area Harvested Domestic

Date Production (MTs)
(HECTARES) Consumption (MTs)
1971 11,000 2,177 33,312

1972 9,000 1,742 47,029
1973 7,689 1,306 42,457
1974 7,284 1,306 41,368
1975 6,000 1,089 44,416
1976 5,000 871 37,014
1977 5,000 653 35,925
1978 7,000 871 46,593
1979 6,000 871 46,811
1980 8,000 1,306 45,505
1981 17,000 4,790 44,416
1982 20,000 3,919 50,077
1983 17,000 3,266 47,682
1984 13,000 2,395 52,472
1985 17,000 5,008 56,391
1986 13,000 3,919 51,819
1987 12,000 6,967 52,472
1988 17,000 6,967 87,526
1989 19,000 13,935 92,752
1990 20,000 16,983 98,195
1991 19,000 13,935 105,597
1992 20,000 15,894 110,823
1993 21,000 16,983 100,590
1994 21,000 16,983 110,387
1995 26,000 19,595 120,621
1996 35,000 13,934 129,330
1997 35,000 13,934 141,740
1998 29,000 13,064 152,627
1999 38,000 14,152 174,399
2000 16,000 7,403 217,945
2001 51,000 15,241 261,490
2002 48,000 15,023 337,911
2003 49,000 15,241 376,013
2004 44,000 13,064 409,326
2005 50,000 15,241 452,872
Source: United States Department of Agriculture
Import Statistics:
Cotton is one of the important cash crops in Bangladesh. It is the main raw materials of textile
industry. Annual requirement of raw cotton for textile industry of Bangladesh is estimated around
2.5 million bales. Local production is only about 0.1 million bales. Around 4-5% of the national
requirement is fulfilled through the local production; remaining 95-96% is fulfilled by importing
raw cotton from USA (40%), CIS (35%), Australia, Pakistan, South Africa and other country
producing countries (25%) (BTMA, March, 2002).
In 2011, Bangladesh surpassed Indonesia as the world’s third largest cotton importer by volume.
Between 2006 and 2011, import volumes increased from 123,920 MTs to 555,977 MTs. Values
rose at an even faster rate over the same time period from $151.41 million to $991.91 million.
Since 2006, Bangladeshi cotton imports averaged growth of 51 percent per year and its share of
world imports jumped from 2 to 8 percent. India is Bangladesh’s largest supplier, contributing 65
percent of all imported cotton in 2011 (up from 33 percent in 2006). The US is the second largest
supplier, its share in the market falling from 24 percent in 2006 to 16 percent in 2011. Other
major trade partners include Australia (6 percent of imports in 2011) and Pakistan (4 percent of
imports in 2011).
Bangladesh imported over 3.94 million bales of cotton in the previous fiscal year of 2010-2011,
according to latest data from Bangladesh’s commerce ministry. Of the total amount, 41.82 per
cent was imported from India, 35.31 per cent from Uzbekistan and other members of the
Commonwealth of Independent States, 7.68 per cent from Africa (East and West) and 15.19 per
cent from US, Australia, Pakistan, China and other countries.
Bangladesh raw cotton imports in fiscal year of 2011/12 are estimated at 3.25 million bales, a 12
percent decrease from the fiscal year of 2010/11 import level. Many Bangladeshi buyers are
currently facing contract payment problems, however as the trade situation is expected to
improve, MY 2012/13 imports are forecast to increase to 3.6 million bales. Last year, the U.S.
market share in Bangladesh raw cotton imports grew was around 12 percent, largely due to
strong demand from new generation spinning mills.
Bangladesh raw cotton imports in fiscal year of 2012/13 are estimated at 3.7 million bales, a 15.6
percent increase from MY 2011/12, Strong demand from the spinning sub-sector, as well as
lower international prices, will likely continue to encourage raw cotton imports, which are
forecast to reach 3.8 million bales in MY 2013/14. US cotton sales to Bangladesh, however, have
fallen sharply as a number of Bangladesh importers defaulted on contract commitments. The US
share of the Bangladesh raw cotton has declined from 14 percent in MY 2010/11 to 5 percent in
MY 2011/12. At the same, imports from India and Uzbekistan are increasing.
Fiscal year of 2013/14 and fiscal year of 2014/15 production levels are projected at 115,000 and
120,000 bales on good weather and increased hybrid seed usage. MY 2013/14 and MY 2014/15
raw cotton imports are projected to increase by 8.3 and 7.6 percent to 3.9 and 4.2 million bales
on strong demand by the export-oriented ready-made garment (RMG) sector.
In May this year, Bangladesh initiated talks with Uzbekistan to import more cotton, after India
imposed a ban on cotton exports on March 5.India decided to impose the ban after exports surged
9.5 million bales, exceeding the Indian government’s estimates of 8.4 million bales, set in
January this year. The ban was lifted on May 1 after India considered the interests of farmers,
industry and trade in India.
Bangladesh Cotton Imports by Year (1971-2014):

Market Year Imports Unit of Measure Growth Rate
1971 150 1000 480 lb. Bales NA
1972 265 1000 480 lb. Bales 76.67 %
1973 223 1000 480 lb. Bales -15.85 %
1974 164 1000 480 lb. Bales -26.46 %
1975 176 1000 480 lb. Bales 7.32 %
1976 173 1000 480 lb. Bales -1.70 %
1977 142 1000 480 lb. Bales -17.92 %
1978 217 1000 480 lb. Bales 52.82 %
1979 212 1000 480 lb. Bales -2.30 %
1980 205 1000 480 lb. Bales -3.30 %
1981 193 1000 480 lb. Bales -5.85 %
1982 208 1000 480 lb. Bales 7.77 %
1983 266 1000 480 lb. Bales 27.88 %
1984 247 1000 480 lb. Bales -7.14 %
1985 186 1000 480 lb. Bales -24.70 %
1986 217 1000 480 lb. Bales 16.67 %
1987 197 1000 480 lb. Bales -9.22 %
1988 346 1000 480 lb. Bales 75.63 %
1989 507 1000 480 lb. Bales 46.53 %
1990 367 1000 480 lb. Bales -27.61 %
1991 444 1000 480 lb. Bales 20.98 %
1992 356 1000 480 lb. Bales -19.82 %
1993 322 1000 480 lb. Bales -9.55 %
1994 413 1000 480 lb. Bales 28.26 %
1995 482 1000 480 lb. Bales 16.71 %
1996 519 1000 480 lb. Bales 7.68 %
1997 597 1000 480 lb. Bales 15.03 %
1998 650 1000 480 lb. Bales 8.88 %
1999 775 1000 480 lb. Bales 19.23 %
2000 1000 1000 480 lb. Bales 29.03 %
2001 1200 1000 480 lb. Bales 20.00 %
2002 1600 1000 480 lb. Bales 33.33 %
2003 1800 1000 480 lb. Bales 12.50 %
2004 2250 1000 480 lb. Bales 25.00 %
2005 2450 1000 480 lb. Bales 8.89 %
2006 3250 1000 480 lb. Bales 32.65 %
2007 3600 1000 480 lb. Bales 10.77 %
2008 3800 1000 480 lb. Bales 5.56 %
2009 4000 1000 480 lb. Bales 5.26 %
2010 4250 1000 480 lb. Bales 6.25 %
2011 3300 1000 480 lb. Bales -22.35 %
2012 3900 1000 480 lb. Bales 18.18 %
2013 4100 1000 480 lb. Bales 5.13 %
2014 4300 1000 480 lb. Bales 4.88 %
Source: United States Department of Agriculture
Recent Import Statistics of Bangladesh (July/13-Apr/14):

Report For Import Raw Cotton

Uploaded by

Copyright:

Available Formats

Report For Import Raw Cotton

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Report For Import Raw Cotton

Uploaded by

Copyright:

Available Formats

Raw Cotton

Cotton Production in Bangladesh:

Table of Cotton Production and Consumption in Bangladesh (1971-

Area Harvested Domestic

1971 11,000 2,177 33,312

Source: United States Department of Agriculture

Bangladesh Cotton Imports by Year (1971-2014):

Source: United States Department of Agriculture

Recent Import Statistics of Bangladesh (July/13-Apr/14):

You might also like