Imperative to increase production of cotton locally
Sunday, 19 December 2010
Farid Ahmed
THE export earnings of the country's readymade garments (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 70 per cent of foreign currencies earned through RMG export are spent on importing mainly fabric and yarn for the RMG industries.
But the greater value of such imports can be saved through import substitution if raw cotton, the primary raw material for linkage industries, is grown 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 so 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 5.0 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 an annual average. But total yields of cotton, according to same experets, can be fast increased by extending cotton cultivation in the south-western parts of the country. Bangladesh has otherwise some suitable lands and climate for cotton cultivation. No worthwhile activity of the Bangladesh Cotton Development Board (BCDB) is seen in areas other than the south-western districts of Jessore, Kushtia, Jhenaidah and Chuadanga, to encourage cotton cultivation among farmers.
The potential of extending cultivation in many places of the country that are reportedly suitable for cotton cultivation is not being tested by the BCDB though this body was set up over a decade ago. But the present worldwide scarcity of cotton and its soaring prices, has also put into sharp focus the imperative of growing cotton within the country to help reduce import dependence for the product and to find price relief as well.
Greater activism on the part of BCDB, plus government's incentives and support prices for cotton growing, can certainly enthuse a larger number of farmers to take up cotton cultivation as a remunerative commercial crop in between production of foodgrains 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 foodgrains. In that case, it might be necessary to import some quantities of foodgrains. But the import costs of the foodgrains are likely to be notably 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. To satisfy growing demand of cotton with quality, high yielding best quality clone cotton plant has to be imported to produce cotton in Bangladesh.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) says that production of raw cotton could be increased manifold in some years from now through making up a task force to implement an action plan.
THE export earnings of the country's readymade garments (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 70 per cent of foreign currencies earned through RMG export are spent on importing mainly fabric and yarn for the RMG industries.
But the greater value of such imports can be saved through import substitution if raw cotton, the primary raw material for linkage industries, is grown 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 so 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 5.0 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 an annual average. But total yields of cotton, according to same experets, can be fast increased by extending cotton cultivation in the south-western parts of the country. Bangladesh has otherwise some suitable lands and climate for cotton cultivation. No worthwhile activity of the Bangladesh Cotton Development Board (BCDB) is seen in areas other than the south-western districts of Jessore, Kushtia, Jhenaidah and Chuadanga, to encourage cotton cultivation among farmers.
The potential of extending cultivation in many places of the country that are reportedly suitable for cotton cultivation is not being tested by the BCDB though this body was set up over a decade ago. But the present worldwide scarcity of cotton and its soaring prices, has also put into sharp focus the imperative of growing cotton within the country to help reduce import dependence for the product and to find price relief as well.
Greater activism on the part of BCDB, plus government's incentives and support prices for cotton growing, can certainly enthuse a larger number of farmers to take up cotton cultivation as a remunerative commercial crop in between production of foodgrains 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 foodgrains. In that case, it might be necessary to import some quantities of foodgrains. But the import costs of the foodgrains are likely to be notably 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. To satisfy growing demand of cotton with quality, high yielding best quality clone cotton plant has to be imported to produce cotton in Bangladesh.
Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) says that production of raw cotton could be increased manifold in some years from now through making up a task force to implement an action plan.