American Cotton Gets Closer to Bangladesh’s Mills: US Cotton Warehouse in Bangladesh.

Date:

Share post:

Right now, importing American cotton into Bangladesh can take close to three months. A new warehouse in Chattogram is about to change that.

AmeriBangla Corporation is opening Bangladesh’s first privately operated US cotton warehouse in Anwara, Chattogram, on November 18, near the government-designated Free Trade Zone. It’s a leased facility for now, but the plan is to eventually move it into a permanent location inside the zone itself, and AmeriBangla is already seeking support from the US Department of Agriculture, the State Department and US EXIM Bank to make that happen.

Instead of waiting months for individual shipments, local mills will be able to buy American cotton that’s already sitting in the country. It starts small, around 80 to 100 tonnes across three shipments, with around 100 tonnes already on the way from a US port. For smaller mills especially, that means no longer having to commit funds and production schedules months in advance just to secure cotton.

This is part of a bigger shift already in motion. Back in August, AmeriBangla launched CottonPort, a digital marketplace connecting Bangladeshi spinning mills directly with American cotton farmers. It started with 82 tonnes out of Virginia, and more than 30 mill owners have already shown interest. Together, the warehouse and CottonPort are meant to build a straighter line from American growers to Bangladeshi mills.

But none of this works unless the price makes sense.

American cotton usually carries a premium over cotton from other markets. Delivered through conventional channels, it currently costs around 85 cents a pound in Chattogram. AmeriBangla is aiming to come in about 10 cents a pound below that through direct sourcing. Envoy Textiles has already tested the model, importing nearly 60 tonnes and reporting real benefits. And demand is already climbing on its own. Bangladesh imported around $346 million worth of US cotton in FY2025, up from $278 million the year before.

Trade policy is adding even more weight to this. Under the reciprocal trade agreement signed between the US and Bangladesh in February 2026, certain textile and apparel exports can qualify for a zero tariff rate, tied directly to how much US cotton and textile input Bangladesh imports. That’s why AmeriBangla is also rolling out an “All American Cotton” certification programme, verifying origin through industry reporting, third-party audits and isotope testing.

The company is also building out the design side of things. In October, it’s launching the AmeriBangla Cotton Lab in New York, selecting up to 10 emerging fashion designers and supporting them in producing apparel in Bangladesh using certified US cotton, yarn and fabric.

All of this sits inside a much bigger ambition. AmeriBangla wants to help grow trade between Bangladesh and the US from around $10 billion today to $100 billion by 2045. The warehouse is just the first visible piece of that. But for mills on the ground, the immediate story is simple. Cotton that used to take three months to arrive could soon be sitting on a shelf in Chattogram, ready whenever they need it.

spot_img

Related articles

Bangladesh–Hong Kong: Building a New Business Bridge

The Apparel Digest Report From apparel sourcing to investment, technology and higher-value exports, the Hong Kong connection is gaining...

Apparel News in Brief for September, 2026

·      Over 400 RMG Factories Closed in Three Years More than 400 garment factories in Bangladesh shut down between...

American Cotton Gets Closer to Bangladesh’s Mills: US Cotton Warehouse in Bangladesh

The Apparel Digest Report Bangladesh’s first privately operated US cotton warehouse is set to open in Chattogram in November,...

Can DOUR Take the Bangladesh Jersey Beyond Bangladesh?

The Apparel Digest Report More than a year after becoming the official national-team kit sponsor of Bangladesh football, DOUR...