Direct shipping between the United States and Bangladesh is key to getting more American cotton into the Bangladeshi readymade garment (RMG) industry.
Mohammad Ali Khokon, president of the Bangladesh Textile Mills Association (BTMA), said in a discussion recently that the direct vessel service will definitely increase the use of US cotton in Bangladesh.
He also said that although Bangladesh was willing to import more cotton from the US, it was also willing to expand its list of destinations from where the country sources the natural fibre amid intense global competition.
Currently, Bangladesh imports 11% (nearly worth of $1 billion) cotton of its demand from the US and this is likely to be 14% by this year. If the direct vessel service is introduced, the import percentage will increase further, the BTMA president observed.
He also highlighted the time-consuming process of compulsory fumigation at Chittagong port in the import of cotton from the US.
“We are working on it and we also need your positive initiatives for the withdrawal of compulsoriness of fumigation on US cotton. Withdrawal of fumigation will also increase the use of US cotton in Bangladesh,” he hinted to the media.
According to textile millers, Bangladesh imports nearly $1 billion-worth of cotton from the US every year and the number is likely to increase in the coming years.
Moreover, textile millers also import cotton from India, Australia and African countries.
The US has been slowly turning into a good source of cotton for the local millers and the exporter country also wants to grab the expanding Bangladeshi textile industry.
However, the US is the single largest export destination for the country as well.
As the second largest exporters of the apparel, Bangladesh exported apparel items worth $4 billion each in the last few months and also expected to reach the milestone of worth $8 billion soon.
The BTMA leader said that direct shipping services between Bangladesh and the US will reduce the cost of doing business alongside lead time.
Moreover, in a latest event at a hotel in the capital, the BTMA leader said that a number of shipping lines do not want to come to Chittagong port because of vessel and container congestion and the long time it takes to load and unload goods.
They have been leaving goods destined for Bangladesh at ports in China and Malaysia, Khokon lamented.
Regarding this, a BTMA standing committee on shipping will meet the government to propose enabling direct shipping services between Bangladesh and the US.
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 import8.5 million bales of cotton by spending nearly $3 billion.
