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Bangladesh trying to secure cotton supply from India
Apr '12
In order to ensure a regular cotton supply for domestic spinners, Bangladesh is looking at inking a deal with India, world's second largest cotton producer, for importing 1.5 million bales (1 bale=170kg) of cotton each year.

Surpassing the Indian Government's estimated 8.4 million surplus bales of cotton, exports from India surged to around 9.5 million bales by February this year, which prompted the Indian Government to impose a ban on cotton exports on March 5, 2012, to secure adequate domestic supplies.

As stated by the Bangladesh Tariff Commission (BTC) Chairman Mozibur Rahman, over the past few years, there has been a rise in Bangladesh's spinning industry's reliance on India for cotton, as spinners prefer importing the item from next-door neighbour rather than other countries, as it significantly reduces the lead time and carrying costs.

In normal circumstances, cotton traders are free to import any quantity they feel fit, but a ban prevents them from importing the commodity.

Hence, Bangladesh is seriously pursuing the matter with the Indian Government and is looking forward to ink a cooperation agreement with the Indian Government to secure cotton supply for its spinning mills.

BTC Chief said Bangladesh Government would start negotiations on the issue with Indian Textile Minister Anand Sharma, who is slated to visit Bangladesh on May 5, 2012.

BTC would prepare a draft for talks to persuade India to either remove the ban or allow export of 1.5 million bales of cotton per year to Bangladesh. However, it would be Bangladesh's private sector and not the Government that would be importing cotton from India.

According to a United States Department of Agriculture report, Bangladesh's cotton consumption for the ongoing financial year is estimated to be about 3.5 million bales, about 5.5 percent less than its consumption last fiscal. This is attributable to a drop in imports and weaker demand from spinners.

As per the report, Bangladesh's cotton consumption is expected to touch 3.6 million bales during the next fiscal.

Fibre2fashion News Desk - India

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