Bangladesh is on track to maintain its position as the world's largest cotton importer in the MY2025-26, with imports projected to reach a record-breaking 8.5 million bales, according to a forecast from the US Department of Agriculture (USDA).
Vietnam is expected to follow closely with 8 million bales, also marking an all-time high for the country, as stated in the USDA's latest ‘Cotton: World Markets and Trade’ report.
The report points to a slight recovery in global cotton consumption, anticipated to reach a five-year high of 118.1 million bales. This rebound is attributed to stable economic activity, particularly in major textile-exporting nations like Bangladesh and Vietnam.
For Bangladesh, the increase in cotton imports reflects the continued growth of its ready-made garment (RMG) industry — the cornerstone of its export economy. Mohammad Hatem, President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), states, Bangladesh's decision to import more cotton from the US is part of a larger strategy to narrow the trade gap between the two countries.
He notes, the record volume of cotton imports would also strengthen Bangladesh's argument for securing duty-free access for its RMG products in the US market. The government has already taken the necessary steps in this regard, Hatem says.
He further states, US cotton is considered the best globally in terms of quality and consistency, making it the preferred choice for local spinners and manufacturers. He opines, USDA's import forecast is a strong validation of Bangladesh's ability to maintain and expand its leadership in the global apparel value chain.
Global cotton trade is also projected to increase by 2.3 million bales to 44.8 million bales in MY 2026, indicating a broader rise in demand across textile-producing economies.
Having imported 15 million bales in MY 2024, China is projected to import only 7 million bales in MY 2026. The country's reduced demand has created an opportunity for Bangladesh to rise to the top, which analysts say represents a significant structural shift in global cotton trade flows.
The USDA also anticipates stable global cotton prices, supported by adequate supply, a weakening US dollar, and declining energy costs. These trends may ease cost pressures for Bangladeshi mills, which have faced high input costs over the past two years, the association adds.
