Created before the pandemic, Bangladeshi cotton mills do not achieve the desired success. The wire sells badly and they struggle to survive.
Bangladesh has just experienced an unprecedented wave of strikes in textile factories (cf.Bangladesh: Textile Workers Strike · Global VoicesThe cotton industry is also in crisis. To achieve economies of scale, significant investments were made in Bangladesh a few years ago to create cotton spinning. But the pandemic and the significant decline in demand, partly due to the craze for second-hand clothing, have completely changed the situation. The mills struggle to sell their cotton yarn and repay the credits of their latest machines. To try to survive, many of them start producing synthetic yarns or mixtures of synthetic cotton-fibre.
Bangladesh, which previously imported 2 million tons of cotton each year, now hardly buys half of it. Africa, which became the country's largest supplier in place of China (cf.CSR: Traceability of cotton gives yarn to twist) could be impacted by this decline.
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Source(s): Refi
Editor(s): C. Bedouin