Case for stepped up cotton cultivation
Wednesday, 28 November 2007
Amirul Islam
The export-oriented readymade garments (RMG) industries of Bangladesh presently account for about 76 per cent of the country's foreign exchange earnings from exports. The export earnings of the RMG sector could be substantially greater if the RMG industries could be backed up adequately by value-addition through backward linkage activities.
Presently, nearly the value of 75 per cent of foreign currencies earned through RMG export are spent on importing mainly fabric and yarn for the RMG industries. The greater value of such imports can be saved through import substitution if raw cotton, the primary raw material for linkage industries, becomes available in greater quantities in the country. Such cotton can be utilised to make yarn and fabric for the RMG industries locally and, in that case, value addition in the textile sector can be much more and the amount of the country's retained foreign exchange earnings from the textile sector should increase spectacularly .
Raw cotton produced in the country meets only about 5 per cent of the total demand. The rest 95 per cent are imported. Total cotton production in the country in recent years has been about 14,000 metric tons, on average, annually. But experts are of the opinion that total yields of cotton can be fast increased by extending cotton cultivation in the south-western parts of the country. Bangladesh has very suitable lands and climate for cotton cultivation. Apart from the south-western districts of Jessore, Kushtia, Jhenaidah and Chuadanga, no activity of the Bangladesh Cotton Development Board (BCDB) is seen in other areas to encourage cotton cultivation among farmers. Many places of the country are suitable for cotton cultivation but the potential for extending cultivation in these areas is not being tested by BCDB though it was set up over a decade ago.
It is believed that greater activism on the part of BCDB, plus government's incentives and support for cotton growing, can stimulate a larger number of farmers to take up cotton cultivation as a remunerative commercial crop in between production of food grains at many different parts of the country. Besides, there are also the prospects of successfully carrying on cotton cultivation in marginal lands which are not being farmed intensively at present throughout the year. Cost analysis has shown that it would even make economic sense to release part of the good cultivable lands to grow cotton instead of food grains. In that case, it might be necessary to import some quantities of food grains. But the import costs of the food grains are likely to be significantly lower in comparison to the value added earnings of the RMG sector through import substitution.
An action plan needs to be in place for greater production of raw cotton in the country. But no move in this direction has so far been seen. To satisfy growing demand for cotton with quality, high yielding best quality clone cotton plant has to be imported to produce cotton in Bangladesh. Presently, 10 to 15 per cent of international standard raw cotton is grown in the country. Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) says that production of raw cotton could be increased by 80 per cent in some years from now through making up a task force to implement an action plan.
The export-oriented readymade garments (RMG) industries of Bangladesh presently account for about 76 per cent of the country's foreign exchange earnings from exports. The export earnings of the RMG sector could be substantially greater if the RMG industries could be backed up adequately by value-addition through backward linkage activities.
Presently, nearly the value of 75 per cent of foreign currencies earned through RMG export are spent on importing mainly fabric and yarn for the RMG industries. The greater value of such imports can be saved through import substitution if raw cotton, the primary raw material for linkage industries, becomes available in greater quantities in the country. Such cotton can be utilised to make yarn and fabric for the RMG industries locally and, in that case, value addition in the textile sector can be much more and the amount of the country's retained foreign exchange earnings from the textile sector should increase spectacularly .
Raw cotton produced in the country meets only about 5 per cent of the total demand. The rest 95 per cent are imported. Total cotton production in the country in recent years has been about 14,000 metric tons, on average, annually. But experts are of the opinion that total yields of cotton can be fast increased by extending cotton cultivation in the south-western parts of the country. Bangladesh has very suitable lands and climate for cotton cultivation. Apart from the south-western districts of Jessore, Kushtia, Jhenaidah and Chuadanga, no activity of the Bangladesh Cotton Development Board (BCDB) is seen in other areas to encourage cotton cultivation among farmers. Many places of the country are suitable for cotton cultivation but the potential for extending cultivation in these areas is not being tested by BCDB though it was set up over a decade ago.
It is believed that greater activism on the part of BCDB, plus government's incentives and support for cotton growing, can stimulate a larger number of farmers to take up cotton cultivation as a remunerative commercial crop in between production of food grains at many different parts of the country. Besides, there are also the prospects of successfully carrying on cotton cultivation in marginal lands which are not being farmed intensively at present throughout the year. Cost analysis has shown that it would even make economic sense to release part of the good cultivable lands to grow cotton instead of food grains. In that case, it might be necessary to import some quantities of food grains. But the import costs of the food grains are likely to be significantly lower in comparison to the value added earnings of the RMG sector through import substitution.
An action plan needs to be in place for greater production of raw cotton in the country. But no move in this direction has so far been seen. To satisfy growing demand for cotton with quality, high yielding best quality clone cotton plant has to be imported to produce cotton in Bangladesh. Presently, 10 to 15 per cent of international standard raw cotton is grown in the country. Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) says that production of raw cotton could be increased by 80 per cent in some years from now through making up a task force to implement an action plan.