Cotton imports for the 2023-24 Financial year, commencing in August, are expected to decrease by nearly 4 percent to 77 lakh bales, as reported by the US Department of Agriculture (USDA). This decline in cotton consumption is primarily attributed to energy shortages and a shortage of US dollars for imports. The USDA predicts a potential drop of approximately 600,000 bales in the global cotton trade, resulting in a total of 4.33 crore tonnes, with major importing nations like Bangladesh and Vietnam experiencing reduced consumption. The textile industry is currently operating at only 60 percent capacity due to energy constraints and currency-related challenges.
While the USDA initially anticipated a 10 percent year-on-year increase in Bangladesh’s cotton consumption, driven by robust apparel exports, the current situation challenges these projections. The textile industry predominantly manufactures cotton-based garments. However, spinners are gradually diversifying their production to include man-made fibers like viscose in response to shifting consumer preferences. The global economic climate and elevated inflation levels have further dampened demand for yarn, impacting cotton imports.
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