The Apparel Digest Report
A report by the US Department of Agriculture (USDA) has seen Brazil come out as the largest exporter of raw cotton to Bangladesh, leaving India with no other option but to lose its long-held dominance in one of the most significant markets in the world in terms of textile export.
Brazil became Bangladesh’s top cotton supplier in the 2024-25 marketing year, surpassing India due to competitive pricing, stable supply, and logistics, even as India remains a key yarn source; this shift reflects Bangladesh’s strategic sourcing for its major garment industry amid political changes
Bangladesh imported a record 8.28 million bales of raw cotton in the MY25, increasing on 7.8 million bales in the prior marketing year, MY24. Brazil had supplied approximately 1.9 million bales which represents approximately 23 percent of the total imports and India came second with about 1.4 million bales. Other suppliers included West African countries such as Benin and Cameroon, along with the United States, though none matched Brazil’s volume.
A year earlier, India had been Bangladesh’s largest supplier, exporting nearly 1.8 million bales. The Kolkata and Benapole ports usually shortened shipment time of Indian cotton even at a higher price and sometimes quality complications. Brazilian cotton has since gained traction among Bangladeshi spinners due to its competitive pricing, wide availability during harvest, and stable, large-scale supply.
According to the US government report, Bangladesh’s textile industry has the capacity to consume up to 3.27 million tons per year, depending on raw material availability, energy supply and yarn demand.
Currently, only half of this capacity is being utilized, with an estimated consumption of 1.81 million tons in FY2024-2025. In FY2025-206, consumption is projected to “rise to 1.85 million tons, an increase of 2.4% driven by higher imports.“ The spinning industry uses cotton to produce cotton yarns and blends, and production of these is forecast to grow from 1.7 to 1.9 million tons.
Bangladesh is the second largest exporter of ready-made garments in the world after China. The sector generates over 80 percent of the country’s export earnings, contributes about 10 percent to GDP, and employs roughly four million people. Bangladesh has turned to the imported raw cotton to sustain this industry, since the local production is still low at about 153,000 bales due to the limited land and the time taken by the cotton to grow.
The country’s textile industry has the capacity to consume nearly 15 million bales of cotton annually, depending on raw material availability, power supply, and yarn demand. But currently it is only utilized to about half of this capacity where the consumption of cotton stands at about 8.3 million bales in MY25.
Despite political upheaval following the ouster of Prime Minister Sheikh Hasina in August 2024, cotton imports remained largely stable throughout MY25. Initial disruptions to ready-made garment production eased after an interim government took charge, allowing mills to maintain operations.
In the future, USDA predicts a slight increase of 8.4 million bales in the imports of raw cotton in MY26, which is 1.4 percent increase due to increased utilization of the mills. The consumption of cotton will increase to approximately 8.5 million bales, and the yarn production will increase to approximately 1.9 million tonnes.
Given that Brazil currently controls the majority of the raw cotton supply Due to its large spinning capacity, faster delivery routes, and less expensive logistics, Brazil and India continue to dominate the import of cotton yarns into Bangladesh, accounting for over 80% of all imports. Although Bangladesh is still dependent on imports for raw cotton, yarn, and fabric, the shifting trend demonstrates the country’s strong integration into international textile supply chains.
