Europe was hit hard by the worst drought in 500 years where more than 43% of US states are baked by blistering heat, media reported.
Drought-hit global cotton yield could raise the apparel production cost – affecting the ready made garment export of Bangladesh, manufacturers told the media.
According to them, Bangladesh regularly imports cotton from the US and Brazil but some 229 million acres of crops in the US are affected by drought.
According to the UN, the US economy has lost an estimated £249 million due to drought and related crop failures.
Moreover, cotton production is scared to drop in both countries due to the climate crisis which may lead to a crush on Bangladesh’s cotton import and import costs.
Bangladesh Textile Mills Association official told local media that if cotton production is reduced due to drought in Brazil, it will have a severe impact on Bangladesh as Brazil is one of the top five cotton sourcing countries for the country.
Another manufacturer of the country told the media that if US cotton production declines, prices may exceed past records which will further increase production costs as the international market price indices rise or fall based on US production.
According to the BTMA, Bangladesh needs nearly 9 million bales of cotton for its growing apparel industry.
Among them, the local growers can supply less than 2% and Bangladesh has to import 8.5 million bales of cotton by spending nearly $3 billion.