To address the significant demand for cotton in the nation’s textile industry, the Bangladesh Government plans to classify domestically produced cotton as an agricultural product.
As per experts, this long-sought recognition will unlock crucial financial support for cotton farmers and transform the sector by encouraging cultivation on currently underused land. Md Fakhre Alam ibn Tabib, Executive Director, Cotton Development Board (CDB), emphasizes, the heavy reliance of Bangladesh on cotton imports adds more pressure on the foreign exchange reserves besides exposing the textile industry to geopolitical risks.
To counter this, the government aims to expand cotton cultivation to 200,000 hectare by 2050 from the just over 45,000 hectare in FY23-24. This expansion is projected to fulfill up to 20 per cent of the nation's total cotton needs. Domestic cotton production reached about 205,421 bales in FY24.
The Bangladesh Textile Mills Association (BTMA) estimates the country's annual cotton demand to be around 8.5 million bales.
The government aims to utilize unused or underutilized lands, such as riverine islands (‘chars’), drought-prone areas (‘barinds’), hilly regions, and even certain fruit orchards, for cotton cultivation, without negatively impacting food production, according to Tahib.
Classifying cotton as an agricultural product will enable farmers to access subsidized loans at a 4 per cent interest rate, similar to other import-substituting crops, Tahib adds. This policy support will increase their access to low-interest loans and encourage broader participation, including contract farming, he states further.
According to experts, this policy will have a multifaceted positive impact on the rural economy, agriculture, and the textile industry, a cornerstone of Bangladesh's economy.
