Dhaka, Bangladesh (BBN)– Bangladesh wants to import cotton directly from Uzbekistan to stave off adverse impact on prices in the domestic market from purchase of the raw material for the booming textile sector through third-party sources.
A government delegation, headed by Commerce Minister Faruk Khan, will visit Tashkent on November 7-11 this year and discuss with the Uzbek leaders about establishing direct trade link, commerce ministry officials said.
Currently, Bangladeshi yarn producers purchase Uzbek cotton from the third-country sources, especially the Geneva-based suppliers, which leads to higher cost compared with the value at source.
The local readymade garment (RMG) producers have been hard hit by the higher prices of yarn and fabrics in the local markets.
Ban on cotton export by India, world’s second largest cotton supplier, in April this year and volatility in the international markets, local yarn and fabrics prices have swelled unusually.
Garment makers said the prices of yarn in the local markets rose to $5.0 to $5.50 per kg in recent days. It was cheaper by $ 1.0 two months back and more than $ 2.0 two years back.
Bangladesh imports over 40 percent of its annual 4.0 million bales of cotton requirement indirectly from Uzbekistan, the world’s third largest cotton exporter.
Besides, the country procures about 30 per cent of its cotton requirement from India and the reaming 30 per cent from USA, Pakistan, Australia and West African countries.
BBN/SSR/SI-07Nov10-11:03 am (BST)
