Staff Correspondent
Bangladesh’s raw cotton consumption would increase by 5.6% to 9.31 million bales in the marketing year (MY) 2022-23 as the global apparel brands and retailers are placing more work orders.
The United States Department of Agriculture (USDA) made the forecast in its latest report titled Cotton and Products Annual released in April.
As per the estimation of the USDA, domestic raw cotton consumption will reach at 9.31 million bales, 5.6 percent up from the MY 2021-2022 of 9 million bales.
Post assumes continuing high demand for yarn and fabric by the domestic garment industry. Bangladesh has been receiving more work orders since the beginning of 2021 as many brands are shifting their orders from some competitor countries such as Vietnam and Indonesia, said the report.
Contacts also stated that Bangladesh is expecting more orders in the coming months due to the recent Covid-19 lockdowns in China, it added.
Post forecasts MY 2022-23 yarn and fabric consumption at 0.96 million tones and 6.4 billion meters, respectively. For MY 2021-22, the estimates for yarn and fabric consumption were 0.95 million tones and 6.3 billion meters, respectively, said the projection.
It also forecasts MY 2022-23 cotton imports at 8.9 million bales, up 7.2 percent over the MY 2021-22 USDA official estimate, assuming increasing yarn and fabric demand by the RMG industry.
“As the work orders flow is better than the previous year, we are expecting better days in the coming month. To execute these work orders, we need more yarn and fabrics, which also will need more imports of raw cotton to meet the demands of the RMG sector,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan said.
If we consider the present export trend, it reflects a promising growth by the end of this fiscal year, said the business leader.
He also urged the government to ensure an uninterrupted supply of gas and continue the existing policy support to the export-oriented apparel industry to recover from the Covid-19 pandemic.
According to Export Promotion Bureau (EPB) data, Bangladesh’s apparel exports grew by 33.81 percent to $23.48 billion during the July-March period of the current fiscal year. In the same period of last fiscal year, the apparel sector earned $$23.48 billion.
Of the total amount, knitwear products earned $17.11 billion, which was 35.29 percent higher than $12.65 billion in the same period of the previous fiscal year.
Woven products fetched $14.30 billion, up by 32 percent, compared to $10.83 billion in the same period a year ago.
