Bangladesh Launches CottonPort: First Digital Raw Cotton Market Linking Local Mills with US Farmers

TBS Report, Dhaka — Bangladesh's first digital raw cotton market, CottonPort, was officially launched on 27 August 2026 by AmeriBangla Corporation at The Westin Dhaka hotel — a move designed to connect local spinning mills directly with US cotton farmers, bypass traditional middlemen, and significantly expand bilateral trade between the two countries.

The platform, presented by AmeriBangla CEO Aswar Rahman, went live with an initial offering of 82 tonnes of raw cotton sourced directly from Virginia in the United States, pre-positioned for delivery through warehouses serving Chattogram Port. The launch marks the first time Bangladeshi spinning mills will be able to purchase US-grown cotton through a 24/7 digital marketplace with dynamic pricing, container-based purchases and certified supply-chain traceability.

💰 Strategic Vision: $100 Billion Bilateral Trade by 2045

AmeriBangla Corporation has set an ambitious long-term goal: expanding bilateral trade between Bangladesh and the United States from the current estimate of nearly $10 billion to $100 billion by 2045 through commodity exports, machinery trade and capital partnerships. The CottonPort platform is positioned as the foundational infrastructure for that scaling ambition in the cotton and apparel commodity segment.

"By purchasing directly from American farmers, a strong bond and bilateral relationship will be built between Bangladeshi manufacturers and the US market, paving the way for massive growth in Bangladeshi exports to the US over the next few years," Aswar Rahman said at the launch event.

🌿 How CottonPort Works

CottonPort is positioned as a "merchant barrier-free" marketplace designed to:

• 💸 Break long-standing market monopolies in cotton supply chains historically dominated by a small number of international trading houses
• 👥 Strengthen bargaining power of Bangladeshi spinning mill buyers
• 📦 Container-based purchases allowing spinners to buy any quantity at any time at competitive prices
• 🔍 Certified supply-chain traceability ensuring farm-to-mill visibility on origin and quality
• 🚢 Chattogram Port delivery with pre-positioned warehouses for faster turnaround

The 24/7 digital marketplace model directly addresses one of the structural inefficiencies of Bangladesh's cotton import regime: the country is the world's second-largest cotton importer after China, but historically has had limited direct farm-to-mill access, with cotton prices set by international intermediaries rather than by supply-demand matching.

📊 Scale Targets and Trial Phase

During its 2026 trial phase, CottonPort plans to handle up to 10 containers per month. AmeriBangla currently supplies 16 containers of US cotton to Bangladesh every month, and Aswar expects the volume to scale to 280 containers from 2027, with a longer-term target of 1,600 containers monthly by 2028 — which would represent roughly 30,000 tonnes of monthly US cotton imports through the platform.

More than 30 spinning mill owners have already expressed interest in purchasing US cotton directly through the platform, according to AmeriBangla. The early adoption signals strong latent demand in the BTMA (Bangladesh Textile Mills Association) membership for direct US-origin cotton supply, particularly as domestic gas shortages have constrained backward integration investment by local spinners.

🏛 US-Bangladesh Trade Agreement Context

The CottonPort launch carries direct strategic relevance in the context of the bilateral trade agreement signed between the United States and Bangladesh. Under the agreement, the US government agreed to provide duty-free market access for Bangladeshi garments made from imported US cotton and man-made fibres — a provision that materially changes the commercial economics for Bangladeshi spinners sourcing US-origin fibre.

Aswar Rahman said US cotton imports are expected to increase significantly following the trade agreement. By providing a transparent digital procurement channel, CottonPort directly supports the traceability requirements that will allow Bangladeshi apparel exporters to certify US-cotton origin to US customs authorities when claiming the duty-free benefit on RMG exports to the US market.

⚖️ Dispute Resolution Mechanism

Responding to journalists' queries at the launch event, Aswar said disputes arising from CottonPort transactions could be settled through the American Arbitration Association and US courts — a dispute resolution framework that provides greater legal certainty to both US cotton growers and Bangladeshi spinning mill buyers than the more opaque international cotton trading arbitration mechanisms.

The choice of US-style arbitration reflects the cross-border nature of the platform's transactions, where title to cotton transfers between US growers (or their cooperatives) and Bangladeshi spinning mill buyers. The framework also signals the institutional infrastructure that AmeriBangla is building to support the broader scaling of US-Bangladesh commodity trade.

👕 Implications for Bangladesh Apparel Exporters

For Bangladesh's apparel sector — the country's dominant export earner — the CottonPort launch provides a strategically important new sourcing channel at a moment of intensifying pressure:

• 📊 EU apparel exports fell 16.4 percent in H1 2026, driving exporters to seek deeper US market penetration
• 🌟 US trade deal duty-free access on garments made with US cotton creates a direct financial incentive for sourcing US-origin fibre
• 👥 BTMA represents over 1,800 member mills, providing a deep buyer base for direct procurement
• 🚢 Chattogram Port throughput growth of 4.1 percent in 2025 provides the containerised cargo capacity to handle expanded US cotton imports

The platform also aligns with the broader strategic objective articulated by the Export Promotion Bureau (EPB) and BGMEA of diversifying Bangladesh's export product base and trade partner concentration ahead of LDC graduation in November 2026 — with US cotton sourcing representing a structurally important pivot towards deeper US-Bangladesh trade integration.