Bangladesh launched its first digital marketplace for raw cotton on August 27, a platform its backers say will let local spinning mills buy directly from American farmers and strengthen trade ties between the two countries as tariff rules shift.
The platform, CottonPort, was unveiled at a hotel in the capital by AmeriBangla Corporation, a Delaware-registered company founded in 2024 by Bangladeshi-born American Aswar Rahman in response to trade disruption following the change of government in Dhaka. It began operations with an initial offering of 82 tonnes of raw cotton sourced from Virginia.
Rahman, AmeriBangla’s chief executive, said the round-the-clock platform would cut out intermediaries who have long stood between American growers and Bangladeshi buyers, giving mills more leverage on price. He described CottonPort as a “merchant-barrier-free” marketplace designed to break long-standing monopolies in the supply chain.
“Bangladeshi spinning mills have historically operated in a captive market, with limited pricing power during downturns,” Rahman said, adding that direct purchases from American farmers would help build a stronger bilateral relationship and drive future export growth.
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More than 30 spinning mill owners have already expressed interest in buying cotton through the platform, according to AmeriBangla. Purchases are made on a container basis, with shipments already pre-loaded and in transit to Chattogram Port for delivery to buyers’ warehouses. Consignments carry an “All American Cotton” traceability certification backed by U.S. Customs.
CottonPort uses a dynamic pricing model in which listed prices fall daily until a buyer accepts an offer, a mechanism Rahman said would improve transparency and keep American cotton competitive with rivals such as Brazil. Local spinners said the current price gap between U.S. and Brazilian cotton runs from roughly 1 to 4 cents per pound depending on volume, positioning CottonPort’s offering close to Brazilian levels from the outset.
The rollout will start small, with a 2026 pilot capped at 10 containers a month. AmeriBangla plans to scale that to 1,600 containers monthly by 2028, and has set a broader goal of lifting bilateral trade between Bangladesh and the United States to $100 billion by 2045 from about $10 billion currently.
Bangladesh imported 7.82 million bales of cotton in 2025, according to National Board of Revenue data. West and Central Africa remained the largest supplying region even as its share slipped, while Brazil was the top single-country supplier at 2.11 million bales. India shipped 1.24 million bales and Benin 0.80 million, with the United States supplying around 0.77 million bales, roughly a tenth of the country’s total imports.
Direct sourcing from the U.S. could also help Bangladeshi exporters capture tariff benefits now on offer. Washington has granted a proportional waiver on additional duties for Bangladeshi apparel containing at least 20% U.S.-origin raw materials, including cotton, a concession industry groups have called a major opportunity for the sector even as they await clearer guidance on how manufacturers can claim it.