Bangladesh cotton production for MY 2022-23 to be 155000 bales: USDA

In 2021, Bangladesh’s readymade garment exports reached a record high of $35.81 billion, and the country became the second largest exporter after China. Due to high domestic demand for yarn and fabric, Bangladesh continues to import these products in substantial amounts.

Harvested area in the country is increasing due to support from the ministry of agriculture’s Cotton Development Board (CDB) extension service and comparatively higher economic returns, USDA noted.

USDA estimates the MY 2021-22 cotton harvested area and production at 45,000 hectares and 151,000 bales respectively.

Domestically-produced cotton accounts for less than 2 per cent of total cotton consumption in the country. Total cotton cultivation in Bangladesh covers only 0.55 per cent of the country’s 8.1 million hectares of arable land.

In cotton year (CY) 2021, Bangladesh’s readymade garment (RMG) exports hit a record high of $35.81 billion. Knitwear products exports were $19.6 billion and woven products were $16.21 billion, up by 37.72 per cent and 22.45 per cent respectively compared to CY 2020.

In CY 2021, Bangladesh became the second largest global RMG exporter after China. The COVID-19 pandemic adversely affected Bangladesh’s RMG exports in CY 2020, with the country falling behind Vietnam. Total RMG exports were $27.45 billion, down by nearly 17 per cent from the previous year; however, Bangladesh’s RMG factories began to see increased orders from Europe and the United States in the second quarter of 2021 as their economies recovered.

Bangladesh imports large quantities of fabric and also exports limited quantities. The value of Bangladesh’s fabric exports under HS codes 5208 and 5209 in CY 2021 was $27.83 million, 40.6 per cent lower than the previous year.

Total fabric imports in CY 2021 also dropped to $1.8 billion from $2.6 billion in CY 2020, as Bangladesh imported more yarn.

Cotton consumption continues to increase for MY 2022-23. USDA forecasts that the total domestic raw cotton consumption at 9.31 million bales, up by 5.6 per cent over the MY 2021-22 USDA official estimate.

Post estimates MY 2021-22 domestic raw cotton consumption at 9 million bales, which is 2.27 per cent higher than USDA official estimate.

USDA forecasts MY 2022-23 yarn and fabric consumption at 0.96 million MT and 6.4 billion metres respectively. For MY 2021-22, it estimates yarn and fabric consumption at 0.95 million MT and 6.3 billion metres respectively.

Bangladesh’s cotton imports continue to increase steadily. USDA forecasts MY 2022-23 cotton imports at 8.9 million bales, up by 7.2 per cent over the MY 2021-22 USDA official estimate, assuming increasing yarn and fabric demand by the RMG industry.

Fibre2Fashion News Desk (DS)