Bangladesh has spent approximately $20.29 billion USD on cotton imports over the past five years (2020–2024). During this period, around 39.6 million bales of cotton were imported from 36 countries. Given that cotton is the main raw material for the country’s ready-made garment (RMG) industry, this demonstrates how heavily the garment sector depends on imported cotton.
The United States, the world’s largest cotton exporter, supplied the highest amount of cotton to Bangladesh--approximately 2.84 million bales, worth $1.87 billion. Significant quantities also came from Australia, India, Brazil, China, and several African countries.
Importers report that Bangladesh imported:
- $3.29 billion worth of cotton in 2020
- $4.72 billion in 2021
- $5.04 billion in 2022
- $3.32 billion in 2023
- $3.92 billion in 2024
Fluctuating global cotton prices, supply chain disruptions, and Bangladesh’s weak domestic cotton production have increased reliance on cotton imports.
Experts point out that U.S. cotton is globally valued for its high quality, consistent availability, and the political stability of its supply chain, making it a dependable option for Bangladesh.
A senior official of BGMEA said that cotton is the primary raw material for apparel exports, and instead of relying solely on imports, it's now essential to explore alternative sources. From January 2025, the United States has implemented changes to its tariff policy, allowing duty-free access for imported goods if at least 20% of their value is made up of components produced in the U.S. Consequently, garment manufacturers in Bangladesh are planning to double their cotton imports from the U.S.
For example, for a pair of Calvin Klein denim pants with a free-on-board (FOB) value of $8, the fabric cost is about $4.125, of which 33.25% is attributed to cotton. So, using U.S. cotton would contribute to meet the tariff exemption criteria.
Kutubuddin Ahmed, Founder and Chairman of Envoy Textiles, stated that they produce about 54 million yards of denim fabric annually, 60% of which is exported to the U.S. They plan to increase U.S. cotton imports from 15% to 60%.
Similarly, Mohammad Abdullah Zaber, Managing Director of Zaber & Zubair Fabrics Ltd., said they currently use 30% U.S. cotton, aiming to increase it to 50% by the end of 2025.
Other large importers include Matin Spinning and Ha-Meem Group. Business leaders feel that due to the higher cost of American cotton, government support is necessary.
Bangladesh Textile Mills Association (BTMA) President Shawkat Aziz Russell has urged the government to reduce the interest rate on EDF loans to 2% for importing U.S. cotton, offer cash incentives of 3–4 cents per pound, and waive the 1% advance income tax (AIT).
The Bangladesh government is now preparing a roadmap to raise the share of U.S. cotton to 25% by 2028. The target is to increase cotton imports from the U.S. from 100 million bales in 2025 to 210 million bales in 2028. The value may rise from $473.8 million to $987 million. A special bonded warehouse is also being planned to enable duty-free import of U.S. cotton.
According to a forecast by the U.S. Department of Agriculture, in the 2025–26 fiscal year, Bangladesh is expected to retain its position as the world’s top cotton importer, bringing in 8.5 million bales.
Meanwhile, China’s cotton imports are projected to drop significantly from 15 million bales in 2024 to 7 million bales in 2026. This would further strengthen Bangladesh’s global standing in cotton imports.
To remain competitive in the U.S. market, increasing the use of American cotton is crucial. Without government support, bonded facilities, and long-term strategies, achieving this goal will be difficult. However, with the right decisions and timely action, Bangladesh can further solidify its leadership in the global apparel industry.
(Translated by Afia Nanjiba Ibnat)
