India’s imports of Brazilian cotton surged dramatically in the 2024–25 season. Imports rose from aorund 67,805 bales in 2023–24 to about 654,819 bales (170 kg standard bale) by May 31, 2025, a near-tenfold jump. The import value also rose strongly, driven not just by the higher volume but by mills paying premiums for superior cotton quality, especially extra-long staple and low-contamination fibres. The drivers behind this jump are:
- Domestic shortfall and price dynamics: India’s domestic cotton crop fell short of consumption in 2024/25, pushing mills to source internationally. With Brazil harvesting a record crop and dip in global cotton prices, imported cotton became cost-competitive, encouraging Indian spinners to buy more.
- Quality, sustainability & traceability advantages: Brazilian cotton has low contamination and consistent fibre length, and it offers robust sustainability certifications and bale-level traceability, making it an attractive option for spinning mills focused on higher-value and export-oriented yarns.
- Policy & market context: Temporary suspension of India’s 11% import duty made Brazilian fibre more affordable. Combined with shifting global trade flows and proactive outreach by Brazilian exporters, these policy moves accelerated shipments to India.
Whether imports remain elevated in 2025–26 will depend on the scale and quality of India’s upcoming harvest, the continuation of any import-duty relief, and how Brazilian exporters price and allocate their volumes. If domestic production recovers, import dependence could moderate. However, mills that have experienced the operational advantages of cleaner, traceable cotton may continue sourcing part of their needs from Brazil.