“Such consumption indicates the strength of backward linkage industries in a country…BTMA (Bangladesh Textile Mills Association) statistics projected that the total import of raw cotton would remain the same as last year’s 4 million bales at the end of the current fiscal year this month. ..However, the country maintained a 10-15 percent growth in cotton imports over the last few years, as it is import-dependent. ..Raw cotton consumption in some competing countries like India increased to 18.3 million bales in the last ten years, China consumption jumped to 52 million bales in 2007-08 from 19.159 million bales ten years back and Pakistan posted a rise to 12.4 million bales from 7.187 million bales. ..Meanwhile, US domestic cotton consumption, which was 11.349 million bales in 1997-98, has reduced to 3.5 million bales in 2008-09, while cotton imports by 27 countries of the European Union declined to 1.4 million bales during the period from over 6 million bales in 1997-98. This slump is because of the shift of textile business to South Asian region from the West (particularly US and EU countries)…Pointing to Bangladesh’s raw cotton consumption scenario, BTMA President Abdul Hai Sarker said, “Many spinning mills are failing to utilise their full production capacity because of errant power and gas supply, recession fallout and the increase in import of yarn from other countries.”..He feared a fall in raw cotton consumption in case the full production capacity could not be utilised. ..Many spinning mills now run at least 25 percent below their capacity, Sarker said, adding: “As a result, raw cotton consumption remained static this time.”..However, Ashraf Hossain Bakaul, managing director of AHB Cotton, an importer, pointed to the other side of the coin. He said the increase in demand for raw cotton in the last month has pushed its prices up in international market on the back of a slight improvement in global crisis…He said currently cotton is selling at 68-70 cents per pound. The item was sold at 62-64 cents a pound in early May…K M Rezaul Hasanat, managing director of Viyellatex Group, a leading textile maker, said cotton consumption in his factory increased to some extent, but not at the previous year level…Bangladesh imports 70 percent of cotton from Uzbekistan. The remaining import demand is met by USA, West Africa, Turkmenistan and some Commonwealth Independent States (CIS)..
Date:6/10/2009
Source:The Daily Star