The Apparel Digest Report
Bangladesh’s first privately operated US cotton warehouse is set to open in Chattogram in November, giving textile mills faster access to American cotton. The project could reduce import delays, lower sourcing costs and strengthen the supply chain between US cotton producers and Bangladesh’s textile industry.
For Bangladeshi textile mills, importing cotton from the United States can take close to three months. The long transit time means manufacturers must plan well in advance, while remaining exposed to changes in cotton prices and shipping costs. A new warehouse in Chattogram could make that process considerably faster.
AmeriBangla Corporation plans to begin operations at its US Cotton Warehouse in Anwara, Chattogram, on November 18. Located at a leased facility near the government-designated Free Trade Zone, the warehouse will allow local spinning and textile mills to purchase American cotton already stored in Bangladesh instead of waiting for individual shipments to arrive. The facility is expected eventually to move to a permanent location inside the Anwara Free Trade Zone.
Bringing Cotton Closer to the Mill
The warehouse is expected to begin with around 80 to 100 tonnes of cotton. AmeriBangla plans to start with three shipments and gradually increase inventory according to demand. Around 100 tonnes had already left a US port for Bangladesh ahead of the planned launch.
The immediate advantage for textile manufacturers will be shorter lead times. Cotton imported after an individual order can take around 90 days to reach Bangladesh. Keeping cotton locally would allow mills to buy from available stock when required, rather than waiting months for a new shipment.
This could be particularly useful for mills and factories with smaller capital capacities. Instead of committing funds and production schedules around long-distance imports, they would have access to US cotton closer to the point of consumption.
The warehouse also fits into a wider shift in cotton sourcing. In August, AmeriBangla launched CottonPort, a digital marketplace designed to connect Bangladeshi spinning mills directly with US cotton farmers. The platform began with 82 tonnes of cotton sourced from Virginia, while more than 30 spinning mill owners had reportedly expressed interest. Its model includes container-based purchases, dynamic pricing and pre-shipped cotton moving towards Chattogram.
Together, CottonPort and the physical warehouse are intended to create a more direct supply chain—from American growers and ginners to Bangladeshi textile mills.
The Price and Quality Equation
Local availability could also reduce some of the uncertainty associated with long import cycles. Mills would not necessarily have to wait through a lengthy shipping period before securing cotton, giving them greater flexibility in procurement.
Price, however, will remain an important consideration.
American cotton generally carries a premium compared with cotton from some other sourcing markets. Industry participants argue that its quality can help offset part of that premium through lower waste and processing losses.
AmeriBangla is also seeking to make US cotton more competitive through direct sourcing. According to the company, US cotton imported through conventional channels currently costs around 85 cents per pound when delivered to Chattogram. By sourcing directly from American farmers and ginners, AmeriBangla expects its warehouse supplies to be around 10 cents per pound below prevailing delivered rates.
There are already early signs of commercial interest. Envoy Textiles has tested direct purchases through AmeriBangla. The company has indicated that the model could become a larger source of supply if AmeriBangla can provide greater volumes consistently while maintaining competitive prices. The Financial Express has also reported that Envoy imported nearly 60 tonnes through the company and has seen benefits from direct sourcing.
US Cotton Demand Is Growing
Demand for US cotton in Bangladesh has been rising. According to Bangladesh Textile Mills Association data cited by The Business Standard, the country imported around $346 million worth of US cotton in FY2025, compared with $278 million in FY2024. US cotton accounted for roughly 10 percent of Bangladesh’s total cotton imports. Industry participants believe the value could eventually increase substantially if pricing, supply reliability and trade incentives develop together.
The opportunity is significant because Bangladesh remains heavily dependent on imported cotton. Faster access to a wider range of US cotton could therefore provide mills with another sourcing option while strengthening commercial links between the two countries.
Trade Policy Adds a New Dimension
The warehouse has gained additional importance following the United States–Bangladesh Agreement on Reciprocal Trade signed in February 2026.
Under the agreement, the United States committed to establish a mechanism allowing certain Bangladeshi textile and apparel goods to receive a zero reciprocal tariff rate. The volume eligible for that treatment is to be linked to Bangladesh’s imports of US-produced textile inputs, including cotton and man-made-fibre inputs.
In July, the United States also directed the establishment of tariff-rate quotas for Bangladesh and several other countries, with the quotas intended to encourage imports of US cotton and textile goods. The mechanism is designed to allow specified volumes of textile and apparel products to receive preferential treatment based on the use of US inputs.
For Bangladesh’s apparel industry, this creates a stronger commercial reason to establish traceable US-cotton supply chains. The benefit, however, will depend on the final quota structure, eligibility requirements and implementation of the relevant US trade measures.
Traceability Becomes More Important
AmeriBangla plans to introduce an “All American Cotton” certification programme to verify the origin and content of US cotton used in garments.
The proposed system would combine industry reporting, third-party audits and isotope testing by US state universities. The company plans to introduce the certification programme at an industry event in Manhattan on October 8.
Traceability could become increasingly important as US trade policy places greater emphasis on the use of American textile inputs. For Bangladeshi manufacturers, proving the origin of cotton could become just as important as securing the cotton itself.
AmeriBangla is also preparing to launch the AmeriBangla Cotton Lab in New York City in October. The programme is expected to select up to 10 emerging fashion designers and support them in producing apparel in Bangladesh using certified US cotton, yarn and fabric. The initiative is intended to connect American design talent with Bangladesh’s manufacturing capabilities while creating a more visible “US cotton–Bangladesh manufacturing” supply chain.
From Cotton to a Wider Trade Corridor
The warehouse is part of AmeriBangla’s broader ambition to strengthen the commercial relationship between Bangladesh and the United States.
The company has set a long-term goal of helping increase bilateral trade from around $10 billion to $100 billion by 2045 through greater cooperation in commodities, manufacturing, logistics and capital partnerships. Its strategy now includes not only physical cotton shipments but also CottonPort, warehousing, traceability and design-led initiatives.
AmeriBangla is also seeking support from US institutions, including the US Department of Agriculture, the State Department and US EXIM Bank, for the development of a permanent warehouse facility.
For Bangladesh’s textile industry, however, the immediate impact could be much simpler: faster access to American cotton.
If AmeriBangla can maintain reliable inventory, competitive pricing and credible traceability, the Chattogram warehouse could reduce the long wait associated with conventional imports while bringing US cotton producers closer to Bangladesh’s spinning mills.
More importantly, it could become an early example of how raw-material sourcing, logistics, digital trading and trade policy are increasingly becoming part of the same supply-chain equation.
For an industry where lead time matters almost as much as price, bringing the cotton closer to the mill could prove to be a significant change.
