Bangladesh's lower cotton imports weigh on near-term Indian export sentiment

• Raw cotton imports through Bhomra Land Port decline nearly 40%
  
  
• Weak garment, yarn demand slows Bangladeshi mill procurement
  
  

India's cotton export trade with Bangladesh may remain under pressure in the near term after raw cotton imports through Bangladesh's Bhomra Land Port fell nearly 40% during July-April FY'26, reflecting weaker demand from local spinning mills and garment manufacturers.

Bangladesh imported 1,113 tonnes (t) of raw cotton (across origins) worth BDT 638.8 million during the period, compared with 1,810 tonnes valued at BDT 975.1 million a year earlier, according to Bhomra Custom House data. However, since Bhomra is an India-Bangladesh land trade corridor, the volume predominantly represents India-linked cross-border cotton trade rather than Bangladesh's overall cotton imports.

Trade participants said the decline was largely driven by slower procurement from Bangladesh's yarn-producing textile mills and apparel factories amid subdued downstream export demand. Bangladesh remains one of the largest overseas buyers of Indian cotton and yarn, making the slowdown significant for Indian traders operating through eastern trade corridors.

Buyers turn cautious despite lower Indian prices

Market participants noted that Bangladeshi buyers are increasingly limiting purchases to immediate consumption requirements while negotiating aggressively on prices and shipment terms. According to local traders cited in the report, Indian cotton prices have declined nearly 20% y-o-y to around BDT 95/lb from BDT 114/lb last year.

Despite lower prices, Indian exporters said demand recovery has remained slower than anticipated due to weak garment export orders and cautious mill operating rates in Bangladesh. Traders added that reduced movement through land ports could temporarily impact spot export opportunities for Indian cotton suppliers, particularly small and medium exporters servicing Bangladesh's textile sector.

USDA estimates Bangladesh's cotton imports at 8.2 million bales in marketing year 2025-26, with India remaining one of the key suppliers alongside Brazil and West African origins.

Outlook

Indian cotton export sentiment is expected to remain cautious until Bangladesh's textile and garment sector shows a stronger recovery in export orders. However, lower Indian cotton prices may continue supporting trade competitiveness once downstream demand improves.