Bangladesh eyes surpassing China as world's top cotton apparel exporter
Business
Aims at $50bn in foreign sales this fiscal year after fetching $47bn in 2022-23
WASHINGTON (Web Desk) – Bangladesh cotton consumption is expected to increase by 800,000 bales to eight million thanks to burgeoning apparel exports, says a latest report, which also predicted that the South Asian nation was close to surpassing China as the world’s largest cotton apparel exporter.
As Bangladesh produces very little cotton, it is the biggest importer in the world followed by countries like China, Pakistan, Turkey and Mexico.
The latest report on the Cotton World Markets and Trade by the US Department of Agriculture for the year 2023-24 notes,
“Apparel exports are pivotal to Bangladesh’s economic growth and stabilizing the value of the domestic currency, specifically by obtaining US dollars through foreign sales.”
According to the Bangladesh Garment Manufacturers and Exporters Association, apparel accounted for over 80 per cent of the country’s total exports in fiscal year 2022-23 at roughly $47.0 billion, more than double the value one decade ago.
“This value surpassed the previous year’s record and indicates global importers’ increasing preference for Bangladesh cotton products.”
Meanwhile, the Export Promotion Bureau of Bangladesh is targeting more than $50.0bn of apparel exports in the current fiscal year, slightly higher than the previous fiscal year and proof that the government foresees greater demand.
The US Department of Agriculture also says that the growing apparel exports to the world’s largest importing markets, the United States and European Union, is particularly evident with record volumes of Bangladesh cotton apparel in 2022.
It cites the United States Fashion Industry Association’s annual Fashion Industry Benchmarking Study which says the US fashion companies have attempted to reduce their sourcing from China (the largest apparel exporter) by reallocating sourcing orders to markets including Bangladesh.
Hence, Bangladesh, India, and Vietnam were the three suppliers that retailers plan to increase sourcing from over the next 2 years to divert orders away from China. But Bangladesh is the most competitive apparel supplier from a cost structure point of view, scoring higher than any other country.
