According to Bangladesh’s “Business Standard” report on October 22, on October 21, the international cotton price was US$0.79/pound, which was similar to the high price of US$1.55/pound in May this year. A year-on-year decrease of 49%.
According to data from the Bangladesh Bank, Bangladesh imported $3.186 billion in cotton in the 2020-/21 fiscal year and $4.439 billion in the 2021/22 fiscal year.
Bangladesh is the world’s second largest cotton importer. Domestic cotton production can only meet 1% of its demand, mainly from India, the United States, Brazil, and African countries. Imported cotton. According to the Bangladesh Textile Factories Association, Bangladesh’s cotton imports from the United States account for 11% of its total cotton demand.
At the same time, the Bangladesh Textile Factories Association stated that textile production dropped by 40% due to insufficient natural gas supply. According to the Bangladesh Textile Factories Association, tight natural gas supply has affected the production of 90% of textile factories. In areas where natural gas supply is tight, such as Narayanganj, Comilla, Chittagong and other places, the output of textile factories has dropped to 30-40%, causing the price of yarn per kilogram to rise to US$1.25.
Bangladesh textile factories have suffered heavy losses due to factors such as the appreciation of the U.S. dollar, early orders made when cotton prices were high, and insufficient natural gas supply leading to a drop in output. Textile factories are willing to pay higher gas prices to ensure a stable supply of natural gas for production.
