Bangladesh is poised to become the world's largest cotton importer in the current fiscal year, driven by its strategic geopolitical position and a shifting global trade environment, according to industry insiders and trade experts.

They, however, caution that the ongoing geopolitical challenges may threaten a steady cotton supply, potentially disrupting the country’s vital export sector.

In this context, Foreign Affairs Adviser Md Touhid Hossain said, “We are considering importing cotton from the US, to minimise the trade gap with the country and encourage the US agriculture production.”

He noted that increased cotton imports from the US could mutually benefit American suppliers and Bangladeshi businesses, while also safeguarding Bangladesh from potential tariff pressures under a Trump administration.

“The US government will hesitate to impose tariffs on goods made in Bangladesh, while Bangladesh imports more cotton from the country,” he said during a recent discussion meeting.

The United States Department of Agriculture (USDA) has forecast that Bangladesh will overtake China in cotton imports during FY2024-25.

Cotton is a crucial raw material for Bangladesh’s ready-made garment and textile sector. Bangladesh is expected to import 7.8 million bales of cotton this year, up from over 7.5 million bales in FY2023-24, according to the USDA’s latest report. Globally, cotton imports are projected to reach 42.4 million bales during FY2024-25, with Bangladesh, China, Vietnam, and Pakistan accounting for 65 percent of that total.

China is expected to import 8 million bales, Bangladesh 7.8 million, Vietnam 7.1 million, and Pakistan 4.8 million bales. Despite the optimistic import forecast, local textile mill owners report that many factories are operating below capacity due to a persistent gas crisis.

Showkat Aziz Russell, President of the Bangladesh Textile Mills Association (BTMA), said Bangladesh has reduced incentives for parts of the garment sector and suspended Indian yarn imports through land ports. He believes this will bolster domestic textile production in the coming months.

“Bangladeshi textiles are producing world-class yarn, which is best for good quality fabrics. So stopping low-quality yarn through land ports was a threat to domestic textiles and Bangladesh to compete with global producers,” Russell said.

The sector includes 1,849 BTMA-member mills and accounts for over 86 percent of national export earnings. Cotton fibres make up 71 percent of materials used, with non-cotton fibres comprising the remaining 29 percent.