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Bangladesh launches CottonPort to connect spinning mills directly with US cotton farms

Bangladesh’s first digital raw cotton market has launched with an initial offering of 82 tonnes from Virginia. CottonPort aims to connect Bangladeshi spinning mills directly with US farmers, offering dynamic pricing, traceability and container-based purchasing.

Bangladesh launches CottonPort to connect spinning mills directly with US cotton farms

Digital marketplace opens with Virginia cotton

Bangladesh has launched its first digital marketplace for raw cotton, creating a direct purchasing channel between the country’s spinning mills and cotton farmers in the United States. AmeriBangla Corporation officially introduced CottonPort at The Westin Dhaka on 27 August, according to The Business Standard.

The platform went live with an initial offering of 82 tonnes of raw cotton sourced directly from Virginia. More than 30 spinning mill owners have already expressed interest in buying US cotton through the marketplace, AmeriBangla CEO Aswar Rahman said.

CottonPort is designed as a round-the-clock marketplace with dynamic pricing, container-based purchasing and certified supply-chain traceability. Shipments are pre-positioned for delivery to warehouses through Chattogram Port, giving participating mills a defined logistics route from the United States to Bangladesh’s main textile production base.

Direct sourcing targets traditional intermediation

AmeriBangla describes CottonPort as a “merchant barrier-free” market intended to reduce the role of entrenched intermediaries and improve the bargaining position of Bangladeshi buyers. Direct access to growers could give mills greater visibility into origin, pricing and shipment status, although the source material does not specify transaction fees, payment terms or expected savings.

The container-based model is particularly relevant for spinning companies that need to align cotton purchases with production schedules and warehouse capacity. Dynamic pricing may also help buyers respond more quickly to market changes, while certified traceability can support mills serving customers that require documented supply chains.

The initial volume remains limited relative to the needs of a large textile manufacturing industry. CottonPort plans to handle up to 10 containers per month during its 2026 trial phase. Its target is to expand to 1,600 containers monthly by 2028, a substantial increase that will test farmer participation, shipping capacity, financing arrangements and demand from Bangladeshi mills.

Platform links cotton supply with apparel trade

AmeriBangla expects direct cotton purchasing to strengthen commercial ties between US producers and Bangladeshi manufacturers. Rahman said the relationship could support growth in Bangladesh’s apparel exports to the United States over the next few years. The company also sees the initiative as relevant as tariffs change, although it provided no estimates for export growth or the tariff effect.

The model connects two stages of the textile value chain: US farms supplying raw fibre and Bangladeshi mills converting cotton into yarn for downstream apparel manufacturing. For US growers, the platform offers a potential direct sales channel into Bangladesh. For local mills, it adds a sourcing option alongside established merchants and suppliers rather than immediately replacing them.

Execution will determine whether the marketplace develops beyond its trial volumes. Mills will need reliable quality certification, competitive landed prices and predictable delivery through Chattogram. If CottonPort can maintain those conditions while moving from 10 to 1,600 containers per month, it could materially increase direct cotton transactions between the two countries and give Bangladeshi spinners more choice in procurement.

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