Bangladesh's cotton yarn imports from India rise amid supply chain pressures

Bangladesh's dependence on Indian cotton imports is growing as local industries struggle to meet tighter lead times. Sourcing raw materials from distant countries like China, Africa, or Latin America takes longer, reducing competitiveness in the global supply chain.

Imports of Indian cotton, yarn, and fabrics have increased since July 2024, following political and labor unrest that disrupted trade and halted factory production. Bangladesh Bank data shows imports from India rose 2.09 per cent year-on-year to $2.36 billion in October-December 2024. In FY24, total imports from India reached $9 billion.

Cotton remains a key import, with Bangladesh sourcing over $3 billion worth annually, more than half from India. In FY24, Indian cotton imports rose to $2.36 billion from $1.92 billion in FY23. Faster delivery just two to three days gives Indian cotton a competitive edge over shipments from Africa or the US, which take around 45 days.

Improved border security has also reduced informal trade. Additionally, dollar shortages in Bangladesh have made it difficult to secure LCs for imports from other countries. As global brands cut lead times, Bangladesh's garment sector is increasingly reliant on India for raw materials to stay competitive.