Bangladesh Becomes the World’s Largest Cotton Importer as Textile Industry Strengthens

Bangladesh has achieved a significant milestone in global trade by becoming the world’s largest importer of cotton in the marketing year 2024–25. According to recently released data from the United States Department of Agriculture Bangladesh imported 8.05 million bales of raw cotton, a figure that surpassed all other countries in the world. This development highlights the country’s crucial role in the global textile and apparel value chain and reflects robust demand from its export oriented garment sector.

The rise to the top of the cotton import rankings comes as Bangladesh’s textile sector continues to recover from post pandemic slowdowns and expand its operations. Even amid political change and capacity constraints, cotton imports remained stable and showed positive growth compared with the previous marketing year.

Why Bangladesh Has Become the Top Cotton Importer

Bangladesh’s position as the leading cotton importer is primarily driven by its standing as one of the world’s largest producers of ready made garments. The textile and apparel industry accounts for a major share of the country’s export earnings contributing significantly to employment and economic growth. Nearly all of the cotton required for this industry must be imported because domestic cotton production remains minimal.

In the marketing year that started in August 2024, Bangladesh imported more cotton than highly industrialised nations with longer histories of textile production. This leap reflects both the scale of Bangladesh’s garment manufacturing ecosystem and its reliance on imported raw materials to keep spinning and weaving operations running.

Despite energy shortages and periodic disruptions to production, spinners and textile mill operators in Bangladesh continued to source large volumes of cotton from foreign suppliers. The resilience of raw cotton imports demonstrates the global competitiveness of the apparel sector and its capacity to absorb significant quantities of essential inputs.

Major Supplier Countries and Shifting Trade Patterns

The cotton imported by Bangladesh in the marketing year 2024–25 came from a diverse set of sources. Historically India has been a major supplier of cotton to Bangladesh because of proximity and established trade networks, but Brazil recently emerged as the largest single supplier.

According to the USDA data:

• Bangladesh imported around 1.9 million bales from Brazil, representing approximately 25 percent of total imports.
• India supplied around 1.4 million bales, making up about 15 percent of imports.
• Other significant sources included Benin at over 1 million bales, Cameroon with close to 620,000 bales, and the United States and Australia each providing roughly 595,000 bales.

The shift to increased Brazilian cotton imports reflects several strategic considerations. Brazilian cotton is attractive to Bangladeshi spinners due to competitive pricing wide availability during harvest and relative supply stability. Although transporting cotton from South America to South Asia requires longer shipping routes compared with regional sources, the overall cost advantages have made Brazilian cotton a preferred choice for many buyers.

Bangladeshi textile industry leaders have noted that although India remains an important supplier, Brazilian cotton’s cost effectiveness and abundant availability during peak seasons have given it an edge. Strategic partnerships between Brazilian producers and Asian textile buyers have also solidified this shift in recent years.

Growth in Cotton Demand and Textile Production

The dramatic rise in raw cotton imports mirrors the expanding demand from Bangladesh’s spinning and weaving sectors. Even though the domestic consumption of cotton stood at around 8.1 million bales, industry forecasts from the USDA predicted that total imports could rise further in the next marketing year due to higher usage by local spinners.

Bangladesh’s textile industry has the capacity to consume significantly more cotton than is currently imported depending on raw material availability energy supply and yarn demand. Domestic production remains limited and manual reliant primarily on human labour for fertiliser application pest control and harvesting.

Growth in raw cotton imports has been supported by broader export expansion in the ready made garment sector. According to government data Bangladesh’s garment exports experienced positive year on year growth in related fiscal periods reflecting robust global demand for products manufactured in the country.

The Role of Cotton in Bangladesh’s Export Economy

Bangladesh’s economy is heavily dependent on the textile and apparel industry. The country is one of the largest garment exporters in the world with products sold to markets in Europe North America and Asia. The industry’s success has been driven by competitive labour costs scale of production and integration into global supply chains.

Raw cotton is the essential raw material for producing cotton yarn and fabrics which are the basis for knitwear denim and woven textiles. Without reliable access to cotton imports Bangladesh’s garment industry would face significant constraints. Given that over ninety percent of cotton consumed is imported the stability of this supply directly affects production capacity export output and employment.

The garment sector’s heavy reliance on imported cotton also influences trade balance and foreign exchange dynamics. Raw material imports constitute a major share of Bangladesh’s total import bill, and fluctuations in cotton prices or supply conditions can have macroeconomic implications.

Challenges and Future Prospects

While Bangladesh has achieved the status of the world’s largest cotton importer it still faces challenges. One significant issue is energy shortages which have constrained production capacity at times and increased operational costs. Textile millers have reported that limited energy supplies can slow down production and reduce competitiveness.

Another challenge lies in logistics and supply chain costs associated with long distance imports. Although Brazilian cotton offers competitive pricing other suppliers may offer shorter transit times which reduce freight expenses and ensure more flexible delivery schedules. Balancing cost and reliability remains critical for importers.

Despite these challenges forecasts indicate that Bangladesh’s raw cotton import demand could continue to grow in the near future. For the marketing year 2025–26 the USDA projects imports may increase to around 8.4 million bales reflecting expected higher utilisation by local textile production units.

Policy makers have also discussed opportunities to boost domestic cotton production through improved cultivation techniques partnerships and technology adoption. However land scarcity limited mechanisation and climatic factors make rapid expansion of local cotton output unlikely in the short term.

Global and Regional Implications

Bangladesh’s rise to the top of the cotton import rankings has implications for global cotton trade dynamics. Shifts in import leadership reflect broader transitions in demand patterns within the textile sector and evolving trade relationships between producing and consuming nations.

Other major importers such as Vietnam Pakistan and China remain important players in the global cotton market. However in recent trading years declining import volumes from China and expanding consumption by Bangladesh and Vietnam have reshaped the distribution of global demand.

Bangladesh’s status as the world’s largest cotton importer enriches its bargaining power with supplier countries and reinforces its role in shaping global textile supply chains. This position also underscores Bangladesh’s importance to cotton producing nations seeking stable export markets.

Conclusion

Bangladesh’s achievement as the leading global importer of cotton in the marketing year 2024–25 signifies a major shift in global trade patterns driven by the strength and resilience of the country’s textile and apparel industry. With Brazil now emerging as a major supplier and total imports surpassing eight million bales Bangladesh illustrates how strategic sourcing and robust production demand can elevate a nation’s role in global commodity markets.

As the textile industry continues to adapt to changing supply conditions and explore future growth opportunities, raw cotton imports will remain a critical economic indicator for Bangladesh’s export performance and industrial health.