Bangladesh, the second-largest exporter of readymade garment items, is likely to import 8.1 million bales of cotton in the marketing year 2025-26 as the world鈥檚 largest raw cotton importer.
According to recently published data by the United States Department of Agriculture titled 鈥楥otton: World Markets and Trade鈥�, the cotton consumption of Bangladesh is expected to remain the same at 8.1 million, which was forecast in August.
However, the consumption forecast slightly declined from 8.4 million bales, which was forecasted in July of this year.
USDA data showed that in MY25, Bangladesh鈥檚 imports of cotton were also at 8.1 million bales, which was 7.57 million bales in MY24 and 7 million bales in MY23.
Earlier in July, the consumption forecast for Bangladesh was lowered by 3 lakh bales due to lower consumption expectations.
Vietnam, one of Bangladesh鈥檚 closest competitors in RMG exports, is also projected to import 8.1 million bales of cotton in MY26.
Outpacing China, Pakistan might become the third largest importer of cotton in MY26, by importing 5.9 million bales, where China is expected to import 5.2 million bales.
Bangladesh was the world鈥檚 top cotton importer in the previous years also.
Meanwhile, on March 31, the USDA, in its report titled 鈥楥otton and Products Annual鈥�, stated that Bangladesh鈥檚 cotton imports would witness a slight increase in MY26 thanks to increasing demand for RMG items.
According to the Export Promotion Bureau鈥檚 data, in FY25, Bangladesh鈥檚 RMG exports experienced a positive year-on-year growth of 8.84 per cent to $39.35 billion.
In MY24, West African cotton held the largest market share in Bangladesh (37 per cent), while other major exporters included Brazil (17 per cent), India (23 per cent), and the United States (9 per cent).
However, the scenario for the US might witness a significant change as Bangladesh is expected to import more cotton from the US.
As part of its tariff negotiations, Bangladesh is expected to increase imports of cotton from the US.
The US imposed a reciprocal tariff of 37 per cent on Bangladesh in April, which was subsequently lowered to 35 per cent on July 8 and further reduced to 20 per cent on July 31 following a series of negotiations.
A delegation of the US Trade Representative visited Bangladesh on Sunday and Monday.
After meeting with the USTR, commerce adviser Sk Bashir Uddin stated that they are attempting to reduce the existing trade gap with the USA by importing energy and agricultural products, such as cotton, soybeans, and wheat.聽
He also said that Bangladesh could meet only 2 per cent of its overall cotton demand through local production, while the remaining 98 per cent of cotton needs to be imported.
Earlier, the Bangladesh Textile Mills Association President Showkat Aziz Russell said that they intend to import cotton worth of $1 billion from the US as part of efforts to reduce the trade imbalance between the two countries.
In 2023, Bangladesh lifted the double fumigation requirement for US cotton, allowing US cotton to enter Bangladesh without fumigation at the port of entry. These changes saved importers millions of dollars and five days of waiting time.
According to the USDA report, global production of cotton has increased by more than 1 million bales to 117.7 million as larger crops in China, India, and Australia.
China鈥檚 production is forecast to increase by 1 million bales to 32.5 million, if realised, the largest crop in 12 years.
According to the USDA, Bangladeshis could produce approximately 153,000 bales of cotton on 45,000 hectares of land, which accounts for less than 2 per cent of its total consumption.
