Cotton prices hit ten-year high will increase cost of garments in Bangladesh

According to Bangladesh’s “Financial Express” report on October 6, Bangladesh textile manufacturers warned that as the global cotton price index hit a ten-year high, Bangladesh’s main export products – Ready-made garments become more expensive and have a cascading impact on the entire industry chain. Bangladesh Textile Mills Association (BTMA) said on Tuesday that spiraling prices of imported cotton may increase the price of locally produced yarn by 15%, which in turn will increase the price of exportable ready-made garment products. The BTMA asked Bangladeshi garment exporters to pay attention to negotiating garment prices with foreign buyers to make up for possible increases in production costs. Mohammad Ali Khokon, chairman of BTMA, said that the global cotton index remained below 100 points in August, jumped this mark at the end of September, and reached 107 points on October 1. Prices of locally produced yarn in Bangladesh are likely to increase for delivery in November and December. Since cotton is an international commodity, local spinners in Bangladesh have little control over the determination of yarn prices. According to BTMA data, Bangladesh imported about 8.2 million bales of cotton in the 2020/21 fiscal year, up from 7.5 million bales in the 2019/20 fiscal year. Bangladesh’s cotton imports are likely to reach 9 million bales this fiscal year, driven by rising garment orders in the global market.