The Bangladesh Textile Mills Association (BTMA) and CottonConnect Limited (CCUK) have signed a memorandum of understanding (MoU) to develop a sustainable and traceable domestic cotton supply chain to reduce dependence on imported raw materials and improve competitiveness in global markets.
The agreement was signed at the BTMA office in the city on Thursday with the partnership focusing on expanding local cotton production, promoting regenerative farming practices and strengthening market linkages for domestically produced cotton.
The signing ceremony was chaired by BTMA President Showkat Aziz Russell, while CottonConnect Chief Executive Officer Alison Ward led the CCUK delegation.
Senior BTMA directors Mohd Khorshed Alam, Syed Enayat Kabir and Rubaiyat Haider attended the event alongside CCUK Bangladesh and Pakistan Country Representative Abou Bakar and consultant Dr Farid Uddin.
Speaking at the event, BTMA President Showkat Aziz Russell said greater domestic cotton production would help reduce import dependency, shorten lead times, save foreign currency and increase the confidence of international buyers in Bangladesh’s textile and apparel sector.
During the discussions, both parties highlighted the government’s target of producing 0.5 million bales of cotton domestically by 2030.
Bangladesh currently requires around 8.5 million bales of cotton annually for its spinning and textile mills, but domestic production stands at only 150,000 to 205,000 bales, meeting just 2 to 4 percent of total demand.
As a result, the country imported nearly 7.8 million bales of cotton in 2025, with annual import costs estimated at $4 billion to $5 billion.
The government, alongside industry bodies and the Cotton Development Board, is now pushing to expand domestic cotton cultivation to reduce reliance on imports.
Both organisations also raised concerns over the existing 1 percent tax deducted at source on the supply of locally produced cotton to export-oriented industries, arguing that the levy discourages domestic cultivation.
BTMA urged the government to withdraw the tax to encourage wider production and use of home-grown cotton.
Under the MoU, the two organisations will collaborate on domestic cotton production, regenerative agriculture, traceability systems, environmental, social and governance (ESG) reporting, capacity building and international cotton supply chain linkages.
Industry stakeholders said building a reliable domestic cotton value chain is becoming increasingly important for Bangladesh’s ready-made garment sector, the world’s second-largest apparel exporter.
They added that greater self-sufficiency in cotton could help manufacturers better withstand global commodity price volatility and supply chain disruptions.
The agreement was signed on behalf of BTMA by Secretary General Brig Gen Md Zakir Hossain (Retd), while members of the CCUK delegation countersigned the document.
