Bangladesh: Growing apparel exports set to boost 2023/24 consumption

Bangladesh`s cotton consumption is projected to increase by 170,000 t, reaching 1.7 m t, primarily driven by the booming apparel export industry. The country sells almost all of its cotton yarn domestically to its fabric and apparel sectors. Bangladesh is on the verge of surpassing China as the world's leading cotton apparel exporter, with rising demand expected to boost cotton consumption further. Apparel exports play a crucial role in the country's economic growth and currency stability, with over 80% of total exports in FY2023 valued at approximately US$ 47b, exceeding the previous year's record. Bangladesh aims for over US$ 50b in apparel exports in FY2024, reflecting anticipated higher demand.

(Source: USDA, World Markets and Trade, August 2023)

Processing of cotton and man-made fibres in India

India`s textile industry spans the entire value chain, boasting global significance as a key fiber producer. It excels in cotton, jute, wool, silk, and man-made fibers, ranking second globally in man-made fiber production in 2022 behind China. Upstream operations, primarily centered on cotton, contribute significantly, with an estimated annual turnover of US$ 50b.Challenges loom for the industry, including a focus on cotton yarn production while missing the trend towards man-made fibers. Moreover, many mills operate outdated machinery, pressuring companies to enhance efficiency and invest in modernization. The weaving sector, employing 3.5 million people, struggles with productivity and quality compared to international competitors due to outdated techniques and machinery. To boost competitiveness, the government aims to establish seven mega textile parks, fostering investments, job creation, and a shift towards man-made fibers, supported by the “5F Vision” (Farm to Fibre to Factoryx to Fashion to Foreign). Additionally, a US$ 2.5b industry support program incentivizes investments in man-made fiber clothing and technical textiles.

(Source: Germany Trade and Invest, August 2023)

Brazil: Record crop expected

As of August 10th, 2023, Brazil has harvested 52% of its cotton fields, according to the latest cotton brazil market report. The Brazilian cotton association, Abrapa, updated its forecasts for the 2023 crop, projecting a production estimate of 3.07 m t from 1.67 m ha, with an expected yield of 1,840 kg/ha, an 18.9% increase over the previous period. Despite planting delays, the weather has been mostly favorable, with record yields anticipated in center-west states like Mato Grosso. Brazil`s cotton exports for August 2022 to July 2023 totaled 1.45 m t worth US$ 2.83b, with expectations of a 61% increase in shipments for 2023/24, primarily to China and Bangladesh.

(Sources: Aprapa Cotton Brazil Report, 8/2023; USDA/FAS: World Agricultural Production Report, 8/2023)

Interessing Fact: Means against bacterial blight: Researchers from the International Rice Research Institute and Oklahoma State University have identified the “B5” gene, which has the potential to grant cotton plants broad-spectrum resistance against bacterial blight, a damaging disease affecting cotton. Bacterial blight control options have been limited, with many farmers resorting to pesticides. The discovery of the “B5” gene offers hope for developing resistant cotton varieties, reducing the need for pesticide applications.

(Source: ISAAA/Phytopathology)

Bremen Cotton Report No. 33/34 August 31, 2023