In its initial projection in April this year, the US agency estimated cotton consumption for MY 2024-25 in Bangladesh at 8 million bales. A bale equals 480 pounds or 218 kg.

It revised the projection downwards in August and September (7.7 million bales) before raising the forecast in its latest update.

Import and consumption of cotton yarn in Bangladesh increased last year.

Cotton prices in the country dropped by 15 per cent year on year (YoY) to $1.79 per kg in July-September from $2.11 a year ago, according to the World Bank commodities price data.

The domestic cotton market had been sluggish in July and August, with demand only starting to pick up by the end of September, as per the country's media reports.

Bangladesh's domestic use of cotton hit 88 lakh bales in MY22 to feed the demand for export-oriented knitwear makers, the main export-earning sector, the USDA report said.

However, cotton consumption began declining in subsequent years and overall use stood at 77.5 lakh bales in MY24.

Millers in Bangladesh import a good chunk from countries in West Africa followed by India, Brazil, the United States and Australia, according to the USDA.

Fibre2Fashion News Desk (DS)