Bangladeshi representatives urged visiting US brands to help offset the cost gap — either by offering better prices for garments made with US cotton or through preferential trade benefits
05 November, 2025, 07:25 am
Last modified: 05 November, 2025, 02:15 pm
TBS Illustration
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TBS Illustration
Bangladesh’s trade in agricultural commodities with the United States is set to deepen, as two parallel developments on Monday underscored a growing convergence of interests — a renewed push to expand US cotton exports and a landmark $1 billion soybean purchase commitment by local processors.
In Dhaka, representatives of US cotton exporters, apparel brands, and Bangladeshi textile and garment manufacturers met to explore ways to boost the share of American cotton in Bangladesh’s import basket.
Currently, US cotton accounts for about 10% of Bangladesh’s total cotton imports, slightly down from the previous year, according to the Bangladesh Textile Mills Association (BTMA).
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Illustration: TBS
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Illustration: TBS
Price and lead time challenges
During the meeting, Bangladeshi importers cited price differentials and long shipping times as major barriers to sourcing more from the United States.
“US cotton costs about $0.12 more per kilogram – and even a one-cent difference matters to us,” said KM Rezaul Hasanat (David Hasanat), managing director of Viyellatex Group, one of the country’s largest apparel exporters and cotton importers.
“Who’s going to bear the additional cost? Moreover, the lead time for US cotton is also longer,” he added.
Industry leaders noted that this price gap makes American cotton less competitive compared to supplies from neighbouring India and several African countries.
“Even after paying a higher price for US cotton, buyers in the United States do not pay extra for garments made with it,” said BTMA vice-president Saleudh Zaman Khan. “Since it’s not mandatory for US buyers to use US cotton, importers naturally source from cheaper markets.”
Call for incentives and tariff benefits
Bangladeshi representatives urged visiting US brands to help offset the cost gap – either by offering better prices for garments made with US cotton or through preferential trade benefits.
They also raised the proposed Reciprocal Tariff framework, under which Bangladeshi products could receive tariff concessions in the US if at least 20% of their raw materials originate there. However, the required legislation is still pending, and the documentation process remains complex.
“We are open to increasing imports from the US, but there must be a clear mechanism to offset the higher cost — that’s what we told the delegation,” said one importer who attended the meeting.
Despite the price concerns, BTMA director Khorshed Alam, managing director of Little Star Group, noted that the superior quality of US cotton helps bridge part of the gap — though not the full $0.12 per kilogram difference.
The meeting brought together representatives from major US cotton traders and apparel brands, including ECOM USA, Cargill Cotton, Louis Dreyfus Company, Olam Cotton, the Carolina Cotton Growers Association, Staplcotn Cooperative, and brands such as Gap Inc. and Kontoor Brands.
According to BTMA data, Bangladesh imported cotton worth $3.92 billion in 2024 — about 8.4 million bales – with just over 7% coming from the US. African countries accounted for 43%, followed by India with 19%.
Mostafa Abid Khan, an international trade expert and former member of the Bangladesh Trade and Tariff Commission, said soybean imports from the US would not significantly raise costs.
“However, higher sourcing costs deter local businesses from importing US cotton,” he said. “If cotton becomes costlier, importers will naturally hesitate.”
To address this, he suggested reducing lead time by setting up a warehouse facility in Bangladesh dedicated to US cotton. “If US cotton is stocked locally, buyers can purchase it as needed, which would make the process more cost-effective,” he added.
$1 billion soybean deal signals deepening agri trade
On the same day, the US Embassy in Dhaka announced another major step in bilateral agricultural trade — a $1 billion agreement between the US Soybean Export Council (USSEC) and a consortium of Bangladesh’s top three soybean crushers: Meghna Group, City Group, and Delta Agro.
Earlier in the day, USSEC also signed separate deals with Mahbub Group and KGS Group.
Under the deal, the companies will purchase American soybeans over the next year – a move expected to triple US soybean exports to Bangladesh and mark one of the largest private-sector commodity purchase commitments in the country’s history.
US Chargé d’Affaires Tracey Jacobson welcomed the agreement, calling it “a reflection of Bangladesh’s growing importance as a key market for high-quality American agricultural products.”
“This commitment underscores the deepening partnership between US producers and Bangladeshi industries,” she said in a statement.
