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Monday, 01 May 2023 16:31

Sudan conflict: Bangladeshis look at alternative sources for cotton from other African countries

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Ongoing conflict in Sudan will not significantly impact Bangladesh's import of cotton from the country, as it only accounts for a small part of the total import, and local importers, spinners, and millers have alternative sources in other African countries, according to industry experts.

African countries, particularly those in the west, including Benin, Lesotho, Chad, and Sudan, are critical sources of cotton for traders in Bangladesh. Western clothing retailers and brands have long banned the use of cotton from these countries under the excuse of using child labour in the cotton industry.

As a result, local spinners, traders, importers, and millers have started sourcing cotton from African countries. According to the Bangladesh Cotton Mills Association (BTMA), African countries provided 37.3% of the total cotton required in the fiscal year 2019-20. That percentage has since risen to over 40%, with Sudan accounting for only 5-6% of the total cotton imported from African countries.

The local cotton traders, spinners, millers, and importers started diversifying from India in sourcing their cotton since 2008 when India stopped shipments of cotton several times without prior notice. As a result, they have reduced their overdependence on Indian cotton and started sourcing from other African countries, the US, Brazil, Australia, and Argentina.

In fiscal year 2019-20, the share of cotton imported from African countries stood at 37.06%, India 26%, CIS 11.35%, Australia 4.65%, US 11.14%, and others 9.65%, according to the BTMA.

Bangladesh imports nearly nine million bales of cotton annually, at a cost of nearly $3 billion for use in nearly 500 spinning mills. The local production of cotton can meet less than 1% of the annual demand.

Industry believes the Sudanese crisis would not have any impact on the local cotton sourcing, textile, and garment sectors. While Sudan is still a small source nation for Bangladesh, other African nations, such as Benin and Mali, are major sources for cotton for Bangladesh as local traders import bulk quantities from those countries.