2. Fundamentals of Cotton Demand and Supply.
To Develop an effective Hedging Strategy
A Critical economic issue for end –user.
Unforeseen natural and man-made events raise the economic
Ever- present price risk , Depend on Coarse – Premium
Security of locking in a price
Risk Manager assess business goals
3. HISTORY OF USE COTTON IN BANGLADESH
Pre-1947 11 Composite Mill, Having 1.1Mn Spindles and 2700 loom for weaving and Handloom Cottage inds.
1956 Capacity Increases to 3.20 Mn Spindles
1972 Capacity Declines to 0.8 Mn Spindles.AllTextile Mill are nationalized and put under BTMC
1982 Privatization ofTextile Mills starts whenGovernment Adopts open Market Policy.
1999 Capacity reaches 2.4 Mn Spindles in the Private Sector and 0.40Mn spindles in Public Sector.
2007 Capacity grows to 6.30 Mn Spindles in290 Private Mills and where 0.40 Mn spindles public Mills.
2008 Capacity grows to 7.20Mn Spindles in 341 Mills
2009 Capacity grows to 7.60Mn Spindles in 350 Mills
2011 Capacity grows to 8.70Mn Spindles in 385 Mills
2015 Capacity grows to 11.05 Mn Spindles in 413 Mills and Rotor 0.257 Mn
4. Up tread Scenario of Bangladesh.
1947 1956 1972 1999 2007 2009 2011 2015
Spindles in mn
6. Reasons For Higher Demand of Cotton
seek sustainable worth in Textile- sector where
product is almost 95% imports substitute.
2. By adopting denationalization policy since 1983 ‘s emerge
private sector spinning and mostly double production
3. Backed by Gov. Spinning sub-sector demand high
Cotton consumption in Domestic and gradual feeding in
RMG of Bangladesh.
7. Reasons For Higher Demand ofCotton
4 .RMG export began in 1980 and Start new Era .
Increases Cotton import but 1990 shows another amazing
5.More attraction for Blooming demand of
cotton due to GSP of EU.
6.To meet huge demand of millions of
peoples (160 mn) .
No of Unit Installed Machine
Spinning Mills 413 Spindles -11.05 mn 2250 Mn Kg Approx-2520 mn kg
FabricsWeaving 792 Shuttleless
Denim-30,H.Tex-22 Shuttle both-48000
240 2720 mn (m)
11. Import scenario of Cotton Last few Yrs
(Source : BTMA)
Year Total Import
2010 5.202 1.12 22% -
2011 4.378 1.66 38% 48%
2012 4.876 1.31 27% (-)21%
2013 5.181 1.73 33% 32%
2014 5.591 2.20 39% 27%
2015 6.103 2.99 49% 36%
12. Country Import Own Production Stock Available USED Export
Bangladesh 5.80 -- -- 5.90 -
Vietnam 5.20 5.20
China 5.00 23.80 64.50 32.00 -
Turkey 3.80 - 3.80 6.40
Indonesia 3.10 3.10
India -- 26.80 11.20 24.50 5.50
United States 12.90 3.60 - 9.50
Brazil 6.70 6.90 - 4.20
Pakistan 7.20 2.30 9.80
Rest of World 12.20 22.90 14.80 31.00 10.07
World 34.90 100.20 103.30 109.20 34.90
Cotton statement for the Month of March, 2016
14. World Cotton USE in Domestic Consumption
0 5000 10000 15000 20000 25000 30000 35000 40000
1000 480 Ib . Bales
Countrywise Statistics of Cotton Cons.in Million Bales
15. World Cotton Stock And Domestic Cons.
2012-13 2013-14 2014-15 2015-16 2016-17
16. At a Glance Forex Earning in Bangladesh.
(Value in Million USD)
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2020-2021
BD Total Export
Source : EXPORT
17. The Vision - 0 is significant
(GDP Expected doubled )
Democracy and effective Parliament
Political framework ,Decetralisation of power & Peoples
Good governance and avoiding political partisanship.
Transformation of Political Culture.
A Society Free from corruption.
Empowerment equal rights for woven.
Economic Development & Initiatives-
Nutrition,Alleviation of proverty,Population and Labour Force
18. Cotton Supply Chain Management(SCM)
• Purchasing-Requirements Planning-Inventory.
• Distribution Planning-Order Processing-Transportation-
• Strategic Planning-Information Services- Marketing/Sales-
• Warehousing-Material Handing-Packaging-Finish Raw Goods
20. SWOT ANALYSIS in Demand & Supply of Cotton
•To have good relation with Sellers- Buyers.
•To positive responses from government to
•Strong Field For COTTON USE
•USDA Marked-UP as a 2ND Biggest Importer in
•Assurance of Payment against Supplied Goods
•At 90-95% import based infrastructural
Establishment from national Banks.
•In quality of goods in delivery Doubtful by
•Intime Shipment is required in Factory .
•To ensure manufacturing garments with quality of
Men's/women's Wear to treat as a Market Leader.
•Chance to focus Bangladesh in the globalWorld in
•Skilled nursering School to proof to shine national
•To Circulate Huge Money in thisTextile Sub-Sector.
•To chance Monetary stuck-up.
•Not available arbitration to solve any dispute
arises in contract/LC.
•No ready Controller to check Financial Loss.
•Still Not any Recovery body to Protect Fund.
•To Find One stop Services
To Increase the EDF for facilitating adequate Import as per
To adjustment period may extend up to 1(One)Year instead of 6
To Ensure Cotton Quality before Shipment ,Inspection must be
done by Pre-Qualified enlisted Inspection Firms.
At Present this Sub-Sector contribution to GDP is 12%.This may
be increased to 24% within Vision 2021.
Fabrics Import may be reduced by increasingTextile
manufacturing Quality fabrics Production for backward linked
Support toWoven Garments Export.
22. Key Reference
EPB-Export Promotion Bureau.
BTMA- BangladeshTextile Mills Association
BKMEA- Bangladesh Knitwear Manufacturers and Exporters Association
BGMEA- Bangladesh Garments Manufacturers and Exporter s Association
BCA- Bangladesh Cotton Association, CDB-Cotton Development Board Bangladesh.
USDA- United States Department ofAgriculture
NCC- National Cotton Council of America
ITC- InternationalTrade Center
GDP- Gross Domestic Product
CCI- Cotton corporation of India ,EICA-East India Cotton Association
EFP-Exchange of futures for Physicals,EFS-Ex for Swaps,OFS-Opations on Spreads
PTS- PrimaryTextile Sector