To be sure, the arrangement could still give Bangladesh a limited edge given that the overall gap in reciprocal tariffs with India is just one percentage point.
Bangladesh imports about 85 lakh bales of cotton a year to supply its nearly 500 spinning mills, sourcing most of it from Brazil, India and African countries
The biggest exposure lies in raw, uncarded cotton, which accounts for more than 70 percent of India’s exports to Bangladesh
While textile manufacturers are pushing for the removal of the import duty on cotton to improve competitiveness of exports, farm organisations are opposed to such a move, pointing to a sharp decline in prices
Cotton consumption in the world's second-largest producer has slowed, with exporters reporting a sharp decline in orders from the United States
India’s move to scrap 11% import duty on raw cotton till September 30 has provided short-term relief for textile players, but analysts warn the benefit could be fleeting as Indian exports face a steep 50% US tariff starting August 27.
The duty cut will give yarn mills a breather, but is insufficient to lower costs and make Indian textiles more competitive in the long term
The temporary suspension of the duty is seen as a relief for India’s garment industry, which is reeling from a steep 50% tariff on shipments to the US
The US is the largest market for India's textile and apparel industry. India, which is the fourth biggest ready-made garment importer to the US, faces stiff competition from China, Vietnam and Bangladesh
The Committee on Safeguards has circulated to WTO Members a notification dated May 24, 2025, by Indonesia concerning the finding of serious injury or threat to the domestic industries producing cotton yarn and a notification of proposed safeguard measures against the importation of the product.
A growing worry within the textile industry is also about consumption declining in America due to higher prices of imported products which would directly impact India's export growth despite having a competitive edge on tariffs over other countries.
Bangladesh is a leading global cotton importer due to the size of its textile and garment industry, but the devastating floods mean few trucks and trains have been able to bring supplies to factories from Chittagong port over the last week, industry officials and analysts said.
Bangladesh was the top destination for India’s cotton exports in FY24
A proposal is also being considered to offer capital subsidy to textile companies for adoption of renewable energy, CNBC-Awaaz reported, citing sources.
The CCI is the government's nodal agency for the procurement of cotton at a minimum support price (MSP). It undertakes procurement when prices fall below the MSP level. Cotton season runs from October 2023 to September 2024.
Global cotton prices are at 16 month high. Cotton prices have risen by14% in past month. Biggest gains in a month after September 2022. India cotton prices trade above Rs 63,000. To know more about why cotton prices have jumped higher, catch Manisha Gupta in conversation with Arun Sekhsaria MD of Dwarkadas group.
Prices may rise only after April as export demand picks up. Lack of sufficient orders and high prices had hit many mills in the first half of FY24
Due to this lower production, India will likely have to import some 2.2 mln cotton bales, which is a three-year high
Higher import duties have increased the prices of cotton, raising production costs for the textile industry and rendering them less competitive in the global market.
India’s cotton output is expected to be the lowest in 14 years. While weather is one reason not in our control, pest attacks and other reasons continue to hurt farmers
Faze Three is well placed for higher growth as a large part of the capex is complete