Indian cotton exports to Bangladesh unlikely to be significantly impacted

12-Feb-2026 11:03 AM

Mumbai. Although Bangladesh has agreed to increase imports of US cotton under the bilateral trade agreement between the United States and Bangladesh, this is unlikely to significantly impact Indian cotton exports to Bangladesh, and India may remain its largest buyer.

Industry and trade analysts say that cotton exports from India will continue because it is relatively cheaper and Bangladeshi millers can import it in smaller quantities and within a shorter period of time.

Bangladesh has traditionally been among the top buyers of Indian cotton. Bangladesh's textile industry may attempt to import US cotton while complying with the provisions of the bilateral trade agreement, but importing large quantities appears difficult.

It is believed that if Bangladesh exports textile products made from US cotton, it may be granted duty-free shipments to the US. This could prove to be a plus point for the Bangladeshi textile industry, as it will gain some advantage over other countries in the US market.

The US imposes a 19 percent tariff on Bangladeshi products, which is higher than in India but slightly lower than in countries like Indonesia and Cambodia.

A leading trade organization states that cotton shipments from the US will take at least 45 days to reach Bangladesh, while Indian cotton shipments can reach there in a maximum of 7-8 days.

The operational financial situation of Bangladeshi importers is quite complex. Domestic demand for textile products remains strong, and its exporters also export textile products to many other markets, including Europe, so the need for Indian cotton imports there may persist.