Bangladesh opens first digital cotton market linking mills to US farmers
New marketplace could reshape how garment powerhouse sources raw materials as US trade deal ties tariff benefits for Bangladeshi clothing to use of American cotton
DHAKA, Bangladesh (MNTV) — Bangladesh has launched its first digital marketplace for raw cotton, creating a direct purchasing channel between the country’s textile mills and American farmers in an effort to cut out intermediaries, improve pricing and deepen trade with the United States.
The platform, called CottonPort, was launched Thursday by AmeriBangla Corporation after two years of development. It began operations with an initial offering of 82 tonnes of raw cotton sourced from the U.S. state of Virginia.
The round-the-clock marketplace is designed exclusively for U.S.-grown cotton, allowing Bangladeshi spinning mills to purchase supplies directly from American farmers instead of relying on merchants who traditionally operate between producers and buyers.
The initiative could have wider implications for Bangladesh’s clothing industry because spinning mills turn raw cotton into yarn used by textile and garment manufacturers.
Businesses behind the project expect easier access to American cotton to support Bangladeshi clothing exports to the United States, including by helping exporters take advantage of available tariff benefits.
AmeriBangla CEO Aswar Rahman described CottonPort as a “merchant barrier-free” marketplace intended to challenge longstanding control by intermediaries and give Bangladeshi buyers greater bargaining power.
He said spinning mills have traditionally operated in what he described as a captive market, leaving them with limited ability to negotiate prices, particularly when the textile industry is struggling.
More than 30 spinning mill owners have already expressed an intention to purchase American cotton through the new platform, according to Rahman.
“By purchasing directly from American farmers, a strong bond and bilateral relationship will be built between Bangladeshi manufacturers and the U.S. market,” he said, arguing that closer commercial links could help drive substantial growth in Bangladesh’s exports to the United States in the coming years.
CottonPort will initially operate on a limited scale, handling up to 10 containers of cotton a month during its trial phase in 2026.
AmeriBangla, however, has laid out plans for a major expansion. It aims to increase the platform’s capacity to as many as 1,600 containers a month by 2028, potentially turning direct digital purchasing into a significant channel for U.S. cotton entering Bangladesh.
The company has placed CottonPort within a broader effort to expand commercial ties between Dhaka and Washington.
AmeriBangla says it aims to help increase bilateral trade from an estimated nearly $10 billion currently to $100 billion by 2045 through greater commodity exports, machinery trade and capital partnerships.
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