Report Highlights:
For marketing year (MY) 2025/26, Post forecasts a slight increase in cotton imports due to increasing demand in the ready-made garments industry. West African cotton holds the largest market share in Bangladesh, while other major exporters include Brazil, India, and the United States.
Executive Summary
On August 5, 2024, Bangladesh underwent a political regime change when former Prime Minister Sheikh Hasina fled the country following a student-led movement and mass uprising that began in July 2024. An interim government (IG) was formed on August 8, 2024, led by Nobel Laureate Muhammad Yunus as the Chief Advisor.
During the student movement in July 2024, and the initial months following the formation of the IG, the ready-made garments (RMG) industry faced uncertainty. Some factories shut down, while others experienced an increase in worker protests, forcing temporary pauses in operations due to safety concerns. This, in turn, led to an initial decline in international work orders. The RMG sector has rebounded, and Post contacts note that RMG factories have seen an increase in work orders from the beginning of 2025 and thus expect an increase in RMG exports.
For marketing year (MY) 2025/26, Post forecasts total cotton imports at 8.2 million bales, slightly higher than the MY 2024/25 estimate, on higher demand in the RMG sector.
Source: USDA-FAS