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The government has eased the rule of compulsory fumigation test for import of American cotton, particularly from the United States, clearing the ways for smooth import of the raw material of textile mills, the backward linkage industry for country’s main export earning garments.
The importers would be able to bring cotton grown in Western Hemisphere or American region furnishing a sanitary and phytosanitary certificate and paper certifying that the imported consignment is free from Boll Weevli, a cotton pest in North America, issued by the competent authorities.
Otherwise, a fumigation test will be needed, the commerce ministry said in a notification issued this week by adding the new provision in the Import Policy Order 2021-24.
Prior to the change, fumigation test was mandatory for imported American cotton, which textile millers say, caused them to spend extra for the test and wait for 5-7 days to get their consignments cleared from the ports.
A senior official of the commerce ministry said it withdrew the rule upon suggestion from the agriculture ministry.
The easing of the rule came several years after the textile millers and the USA had been demanding for it.
“It is a good step,” said Mohammad Ali Khokon, president of Bangladesh Textile Mills Association (BTMA), a trade body of yarn and fabric manufacturers and textile product processors who have invested over $15 billion.
Bangladesh consumes approximately 85 lakh bales of raw cotton annually against the industry’s capacity of 115 lakh bales, said the US Department of Agriculture in a report on Bangladesh’s cotton use in last December.
Some 98 per cent of the total requirement is met through imports as Bangladesh produces 200,000 bales of cotton, according to Cotton Development Board data.
The country imports cotton mainly from Africa and India followed by the USA and other countries, said BTMA Chief Executive Monsoor Ahmed.
In its December report, the USDA said Bangladesh imported 32 per cent of its required cotton from India followed by Brazil 15 per cent, Benin 12 per cent, and the United States 9 per cent.
The volume of US cotton exports to Bangladesh in the marketing year 2020-2021 were approximately 906,000 bales.
Industry operators said imports from the USA are likely to increase as lead time for import will reduce following the lifting of the requirement for fumigation test.
It will reduce the hassle of businesses and cost of doing business too, said Ahmed, adding that the quality of US cotton is good and has wide acceptability.
A Matin Chowdhury, managing director of New Asia Group, said the industry will become efficient.
He said the use of American cotton may increase following the easing of the rule.
“It will also facilitate exports,” he added.
(TDS)
