On the pretext of supply delay caused by container shortages, a section of local agents of international suppliers have allegedly been selling cotton to parties other than original importers they have sales contracts with.
Despite the opening of LCs, local spinning mills are now facing a cotton crisis owing to an untimely supply of cotton as a number of local agents, through whom they placed the cotton import orders to international suppliers, have reportedly sold the key clothing raw material to others.
Spinners are not getting cotton shipments even though 3-4 months have gone past since deadlines ended. They are now trying to reach out to international suppliers, but in most cases, there is hardly any response.
To cope with the situation, some spinning mills are having to source cotton locally at higher prices. Cotton price has now increased to $1.65 per pound from $.95 six-seven months ago.
Bangladesh mainly imports cotton from Louis Dreyfus Company, Olam International and Cargill Cotton.
BTMA is planning to make separate rules for cotton imports says, MdKhorshedAlam, Chairman - Standing Committee on Development for Local Spinning, Weaving, Dying and Printing Mills.
Bangladesh imports about 9 million bales of cotton annually, which meets 98 per cent of its annual demand. There are more than 1,500 BTMA member textile mills in the country. Of them, 433 are yarn manufacturing mills.
