Bangladesh on track to be world’s largest raw cotton importer in MY 2025-26: USDA
Published At: August 18, 2025Bangladesh’s ready-made garment (RMG) industry is the world’s second-largest exporter, but in the 2025-26 marketing year, it is set to become the top importer of raw cotton.
According to the Cotton: World Markets and Trade report released by the U.S. Department of Agriculture (USDA) on Tuesday, Bangladesh is expected to import 8.1 million bales of cotton during this period, slightly down from the July forecast of 8.4 million bales.
However, according to the report, the cotton consumption forecast has also been reduced by 300,000 bales to 8.1 million bales. This is mainly due to a slight decline in demand in the RMG industry. The country's RMG exports grew by 8.84 percent in the 2024-25 marketing year to reach $39.35 billion.
Bangladesh's main competitor, Vietnam, will import about 8 million bales of cotton next year. China's cotton imports will decrease to 5.3 million bales, while China's imports were 15 million bales in the 2023-24 marketing year.
Global production and imports outlook
Global cotton production is set to dip by 1.8 million bales to 116.6 million in the 2025-26 marketing year, according to the USDA report. Output is expected to shrink in the United States, Sudan, Uzbekistan, and Mali, while China could see a boost, with production climbing to 31.5 million bales. Regional production in Bangladesh is very limited; domestic producers on 45,000 hectares are capable of producing about 153,000 bales of cotton, which is less than 2 percent of the country’s total demand.
Trade and benefits with the United States
Bangladesh will import $1 billion worth of cotton as part of reducing its trade deficit with the United States. Earlier, in 2023, Bangladesh lifted the double fumigation requirement for US cotton, which saved importers billions of taka and a few days of time.
Bangladesh Textile Mills Association (BTMA) held an emergency board meeting in August to share updates on its US visit and future plans. BTMA President Shawkat Aziz Russell said, “We are planning to import $1 billion worth of cotton from the US. This will further ensure the supply of raw cotton to our RMG industry and reduce the trade deficit.”
US cotton RMG Industry
