Bangladesh decreases dependency on India and intensifies its sourcing strategy, as Brazil becomes its leading supplier of cotton for the textile and apparel industry. Brazil has supplanted India as Bangladesh’s biggest source of raw cotton, breaking its long-standing dominance in one of the world’s largest textile markets. The Bangladeshi textile industry is the second-largest exporter of ready-made garments, second only to China. According to a report released by the US Department of Agriculture, this change comes several months after the ousting of Prime Minister Sheikh Hasina in a regime change in Bangladesh.
However, India remained the leading supplier of cotton yarn to Bangladesh and accounted for a share of 82% of the total Bangladesh imports of the commodity in MY 2024-2025. The ready-made garments sector makes up more than 80% of Bangladesh’s total export earnings and contributes around 10% to its annual GDP, a Reuters report said in July 2025. About 4 million people were employed in the sector, according to a report.
In 2024-25 (August 2024 to July 2025), Bangladesh imported a record 8.28 million bales of cotton. Of these, Brazil supplied 1.9 million bales at 25% market share, while India dropped second with 1.4 million bales at 15%, according to a December report from the US Department of Agriculture. Just a year ago, India led the ranking with 1.79 million bales and a share of 23% each. The Bangladesh spinning industry uses raw cotton as input to produce cotton yarn and mixed yarn. Imports of cotton in MY 2024/25 are 5.2% higher compared to the 7.8 million bales imported in MY 2023/24, according to the report.
Other major suppliers include the United States with a 7% share, Australia, and several West African countries; none are close to Brazil’s new volume. In the last market year, India was the leading exporter at 1.79 million bales, 23% of the share. “Bangladeshi importers mainly bought Indian cotton for shorter shipment times via the Kolkata and Benapole ports, despite higher prices and some quality issues,” the Daily Star reported.
Row cotton imports are expected to inch up by 1.4% during MY 2025-26 due to higher mill utilisation. The USDA forecasts Bangladesh to import 8.4 million bales of raw cotton in the current market year, up 1.4% from MY25 because of strong demand brought by domestic spinners. This is forecasted to be 5.2 % above the 7.8 million bales brought in during MY24.
Political turmoil imperils Bangladesh’s raw cotton imports: report
The USDA report also mentioned the change in the political regime in Bangladesh, saying that the 2024-2025 market year began in August following protests against the Sheikh Hasina government. Last year on August 5, PM Sheikh Hasina boarded a military helicopter and left for India as lakhs of protesters headed towards her official residence in Dhaka. Since then, Hasina has been in Delhi.
According to official accounts, 1,400 persons were killed during the July-August agitation. The latest USDA report says cotton imports remained unchanged through MY25 despite initial disruptions in RMG production immediately following the formation of a new interim government in August 2024.
The RMG sector in Bangladesh holds considerable significance within the nation’s economy, serving as a key driver of economic growth and development. Bangladesh continues to rely on yarn and fabric imports; India, China remain lead suppliers India has continued to play the lead role in Bangladesh’s textile sector as it has remained the largest supplier of cotton yarn to its neighbor.
India, as of July 2025, supplied 82% of Bangladesh’s total yarn imports, followed by China at 7.5%. According to the USDA report, India has constantly led the position in cotton yarn export to Bangladesh. The report noted that India continues to be Bangladesh’s largest supplier of cotton yarn because of its large spinning capacity, shorter delivery routes, and lower logistics cost.
