Bangladesh’s cotton consumption is projected to slightly increase to 78 lakh bales in the 2024-25 marketing year, according to a recent report by the US Department of Agriculture (USDA). Although earlier estimates suggested consumption would reach 80 lakh bales, the forecast was revised downward before being adjusted upwards in the latest update. Local textile mills are expected to use more cotton this year due to improved business conditions, including a resolution of issues like gas shortages and difficulties in opening letters of credit for cotton imports.
Cotton prices have fallen by 15% year-on-year, which may drive up local yarn production. However, industry insiders caution that gas and electricity shortages continue to hinder operations, with mills currently running at only half capacity. In 2022, Bangladesh’s cotton consumption reached 88 lakh bales but has since declined, with 77.5 lakh bales used in 2024. The country relies heavily on cotton imports, sourcing from West Africa, India, Brazil, the US, and Australia. The USDA expects imports to rise by 2% to 77 lakh bales in 2024-25.
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