File photo: A worker filling cotton in a basket at a cotton processing unit in Ahmedabad. Photo Courtesy: Amit Dave
Most Indian cotton stakeholders feel that despite the US-Bangladesh trade agreement, shipments of the natural fiber crop to Bangladesh will continue as usual. However, some people think that exports to the neighboring country may be affected. Dhaka, which has traditionally been the largest buyer of Indian cotton, is expected to receive cotton from the US as part of the deal.
Vinay N Kotak, president of the apex trade body, Cotton Association of India (CAI), said, “I don’t think there will be any impact on our cotton exports to Bangladesh given our proximity. Shipments from the US and other places take at least 45 days to reach Bangladesh, while from India it takes only 8 days. Their working finances are tight. Besides, they have domestic consumption and they export to other markets like Europe, for which they require Indian cotton.”
“Only 25 per cent of Bangladesh’s apparel exports go to the US, while 50 per cent goes to Europe. The only problem is that we have closed exports through road. This could have an impact. If road exports open up, we will have no problem. Things may get better after the elections (in Bangladesh),” Kotak said.
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Lalit Kumar Gupta, CMD of Cotton Corporation of India, currently the largest stockholder in the country, believes the US-Bangladesh trade agreement could have a positive impact on the domestic cotton market. “It should be better because we are also one of the exporters of cotton bales to them. If their demand increases, then definitely they will import some cotton from us,” Gupta said. “We have also recently sold some cotton to Bangladesh. We are also selling cotton in the export market.” Gupta added.
CCI has recently revised the domestic selling prices and also set the minimum price for exports. “The export price is in line with our domestic price,” Gupta said.
Ramanuj Das Boob, a sourcing agent in Raichur, said although exports have slowed down, there is demand for cotton from Bangladesh, but at below the current market price.
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However, former CAI president Atul Ganatra said, “Exports of cotton and cotton yarn to Bangladesh will be affected. Currently, they are buying Indian and Brazilian cotton. But if they want to save 18 per cent tariff, they will have to buy American cotton. If they buy American cotton, why would they buy Indian cotton or yarn.”
Ganatra said India’s cotton exports have already declined in the last few months due to unrest in the neighboring country. Besides, Bangladesh is getting cheaper Brazilian cotton at 68-69 cents per pound, which works out to Rs 49,000-50,000 per candy in Indian rupee terms. Ganatra asks why they would buy Indian cotton at Rs 55,000-56,000 levels.
Additionally, Ganatra said lower imports into Bangladesh could also impact domestic prices. “Against our estimate of 15 lakh bales, the total exports this year may hardly be around 10 lakh bales,” he said.
CAI has estimated cotton exports for the 2025-26 season ending in September at 15 lakh bales of 170 kg, compared to 18 lakh bales last year. Around 6 lakh bales were exported by the end of January.
Published on February 11, 2026
