Falling cotton prices in the international futures markets haven’t been reason enough for Bangladesh spinners and apparel exporters to cheer up.

They can’t take advantage of lower cotton prices for two reasons: the dollar crisis and the lower gas pressure. Production in some units has fallen by as much as 50 per cent in the last three months owing to low gas pressure. Also, rising inflation in major apparel export strongholds has resulted in a decline in demand for apparel from the end users, which is manifesting in fewer orders from global buyers. This is because of the unfavorable exchange rate, the energy crisis and the fall in demand for finished goods.

Apparel manufacturers are also receiving fewer orders from international buyers amid the slide in demand from consumers buckling under deep inflationary pains caused by the Russia-Ukraine war.Usually, millers, spinners, traders and users brim with joy when the cotton price drops even by a few cents in the international markets since Bangladesh is a net cotton-importing country. And less than two per cent of the country’s total cotton requirement is met through domestic production. Spinners in Bangladesh are sitting on piles of unsold yarn made from cotton imported earlier at a higher price.