First US cotton warehouse in country to open in Nov

The first US cotton warehouse in Bangladesh is set to open in Chattogram in November, a move expected to cut sourcing lead times for local spinners and strengthen trade links between Bangladesh and the United States.

The AmeriBangla US Cotton Warehouse is scheduled to launch on 18 November at a leased facility in Anwara, near the free trade zone, with an initial inventory of 80-100 tonnes. 

The operation is expected to eventually move to a permanent facility inside the Anwara Free Trade Zone.
Business leaders have welcomed the initiative, while stressing the need to keep cotton prices competitive for local entrepreneurs.

Speaking to the Daily Sun, FBCCI Administrator and former Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) president Md Fazlul Hoque said the warehouse could significantly reduce the time required to source US cotton.

“At present, sourcing cotton from the US can take around 30-40 days, so this could significantly shorten that timeframe,” he said.

He said the immediate benefit would primarily be for spinners, which purchase cotton, rather than garment manufacturers directly. However, the initiative could have a positive impact on the wider apparel industry.

“I am hopeful that the suppliers will keep the price competitive. They should also ensure that the faster delivery time does not become an excuse to charge unusually high prices,” he added.
BGMEA Director Mohammed Sohel also welcomed the move.

“Spinners will get cotton at home. Besides, our RMG products will get duty-free access to the US market if we use US cotton. We hope that it will strengthen our bilateral trade,” he said.

AmeriBangla Corporation CEO Aswar Rahman said the initiative is part of a broader strategy to increase bilateral trade between Bangladesh and the US from the current $10 billion to $100 billion by 2045.

“If Vietnam can export more than $100b, Bangladesh also can easily achieve the goal. Just we need integrated efforts,” he said.

The company plans to begin the initiative with three shipments of US cotton for Bangladeshi textile and garment manufacturers. It has also launched CottonPort, a digital marketplace for the auction of raw US cotton.

Aswar Rahman said the warehouse would help create a more integrated supply chain linking US cotton producers with Bangladesh's textile and garment industry. 

He said the project was seeking support from US agencies, including the US Department of Agriculture, State Department and US EXIM Bank.

The company also plans to launch its All American Cotton certification programme at an industry event in Manhattan on 8 October. 

Aswar Rahman said the programme would use industrial reporting, third-party auditing and state university isotope testing to verify certified US cotton content.

He said certified garments could potentially qualify for duty reductions of 10%-19%, along with an 18% transferable tax credit on raw US cotton content, subject to applicable US trade measures.

In October, the company also plans to launch the AmeriBangla Cotton Lab in New York City. 

It will select up to 10 emerging New York fashion designers to produce their apparel lines in Bangladesh using certified US cotton, yarn and fabric.