DHAKA: Australia is looking to position itself as a key supplier of cotton to Bangladesh, hoping to take advantage of forecasts that suggest imports of the raw materials are set to double within four years.
A Bangladeshi delegation visited Australia earlier this month to learn more about its cotton capabilities and identify new suppliers for Bangladesh’s expanding textile manufacturing sector. And a 10 member delegation from the Australian Cotton Shippers Association (ACSA) visited Dhaka earlier this year to highlight Australia’s cotton capabilities, quality attributes and latest research.
Bordered by India and Myanmar, Bangladesh is currently the second largest cotton importer in the world – with ready-made garments accounting for nearly 80% of the country’s export revenue.
“Yet, as only 0.1m bales are produced locally, Bangladesh imports more than 6m bales of cotton. This is projected to double within four years and see Bangladesh overtake China as the world’s largest importer of cotton,” notes Tim Martin, the New Delhi-based trade commissioner and Bangladesh country manager for Austrade, the Australian government trade commission for Australian exporters. He adds: “Australia is also the world’s fourth largest [cotton] exporter and has earned a reputation as a reliable supplier of high-quality cotton which has almost zero contamination.”
While China remains the largest customer for Australian cotton, its has reduced imports as it works through its extensive stockpiles.
Recent forecasts from the International Cotton Advisory Committee (ICAC) say mill use in China is forecast to decrease by 3%, to 7.1m tons, in the upcoming year due to high cotton prices, low polyester prices, and limited imports.
Shipments into Bangladesh, however, are expected to rise by 18%. Australia’s cotton industry competes against a highly globalised market, but short shipping times from Australian ports in Brisbane, Sydney and Melbourne to Asian markets provide added advantages.
Earlier this year the 10 member ACSA delegation met with 90 Bangladeshi business people, textile mill representatives, local agents and importers, to explore further cooperation and partnerships between Australia and Bangladesh.
“While Bangladeshi spinners still think Australian cotton is expensive, tie-ups between textile companies in Bangladesh and big retail buyers in Australia are proving to be a lucrative and growing channel for Australian cotton growers,” says Martin.
