Foreign Affairs Adviser Md. Touhid Hossain today emphasized that Bangladesh's graduation from the Least Developed Countries (LDC) category should proceed as scheduled in 2026, without seeking any deadline extension.
"Neither the government nor the business community has adequately prepared for the transition, but we must move forward," he said while addressing a seminar at the Economic Reporters Forum (ERF) auditorium in the capital.
The seminar titled "Importance and Prospects of Cotton Cultivation in Bangladesh for Saving Foreign Currency" was jointly organized by Economic Reporters Forum, Bangladesh Cotton Association (BCA), Bangladesh Cotton Ginners Association (BCGA), and Bangladesh Sudan Cotton Ginning Industries (BSCGI) at ERF Auditorium in the capital.
Touhid pointed out that Bangladesh would have a three-year grace period until 2029 after its graduation, allowing the business community time to adapt.
He added that the European Union had already provided guidelines to the foreign ministry on securing GSP+ trade facilities post-graduation.
During the seminar, the foreign adviser announced the government's plan to declare cotton as an agricultural product and implement measures within two months to boost domestic production.
He stressed the need for policy support to enhance local cotton cultivation, noting that substituting tobacco with cotton could benefit both farmers and the national economy.
"The government, led by Professor Muhammad Yunus, will not hesitate to take decisions in the best interest of the country, even if they go against certain vested groups," he added.
Touhid also touched on the country’s cotton imports, mentioning that Bangladesh is exempt from US tariffs on cotton exports and hinted at the possibility of importing cotton from the United States.
Regarding Bangladeshi expatriates in Oman, the adviser said initiatives were underway to ease passport-related complications, with expectations that these measures would reduce complexities by half.
He further alleged that Indian media had been conducting a disinformation campaign against Bangladesh and urged local media to counter it by projecting the country’s true narrative through follow-up reports.
National Board of Revenue (NBR) Member Moazzem Hossain, Cotton Development Board Executive Director Dr. Fokre Alam Ibn Tabib, Bangladesh Cotton Ginners Association (BCGA) General Secretary Golam Saber, and Managing Director of Bangladesh Sudan Cotton Ginning Industry Md. Abul Khayer also addressed the event, chaired by ERF President Daulat Akhter Mala.
NBR member Hossain recommended reducing taxes imposed on locally produced cotton and expressed optimism that the tax and VAT on local cotton would soon be withdrawn.
Dr Tabib highlighted that Bangladesh spends around Tk 450 billion annually on cotton imports, asserting that increasing local production could significantly reduce foreign currency expenditure.
"Cotton cannot be grown on rice fields; it thrives in char areas, Barind regions, coastal saline lands, hilly areas, and highlands. With policy support, Bangladesh could produce 2-2.5 million tonnes of cotton without affecting food security," he said.
BCGA General Secretary Golam Saber pointed out that, unlike tobacco, cotton has not yet been recognized as an agricultural product in Bangladesh.
This, he said, deprives cotton farmers of agricultural loans and forces them to pay higher interest rates.
"With proper policy support, cotton could be cultivated on at least 200,000 hectares, enabling Bangladesh to produce one-fourth of its imported cotton locally," Saber added.
ERF President Mala stressed the importance of recognizing cotton as an agricultural product and ensuring policy assistance.
ERF General Secretary Abul Kashem moderated the event.
