South Asia: Pakistan’s early cotton imports intensify regional fibre supply concerns

• Pakistan turns to US and Brazilian cotton ahead of local ginning season
• India reviews cotton import duty amid elevated domestic prices

South Asia’s cotton market is witnessing growing supply-side pressure as Pakistan has started importing cotton from the US and Brazil even before the arrival of its domestic ginning season, highlighting tightening regional fibre availability and sustained demand from spinning mills. The development comes at a time when India is also evaluating the removal of cotton import duty to ease pressure on its textile industry amid elevated domestic prices and lower crop expectations.

Pakistan’s textile sector, one of the country’s largest export-oriented industries, has accelerated cotton imports to maintain mill operations as domestic production continues to struggle with lower acreage, adverse weather conditions, and quality concerns. Industry participants indicated that mills are increasingly relying on imported fibre to secure consistent quality and competitive pricing for yarn and textile exports.

Regional competition for imported cotton rises

The situation is drawing attention across the regional textile trade as India, Pakistan, Bangladesh, and Vietnam continue competing aggressively in global yarn and garment exports. Traders said Pakistan’s early import activity reflects broader concerns over tight cotton availability in South Asia, where domestic supplies remain insufficient against mill demand.

In India, domestic cotton prices have remained above international parity in recent months, prompting spinning mills to seek temporary removal of the 11% import duty. Market participants noted that if India also increases cotton imports alongside Pakistan, demand for Brazilian and US cotton in Asia could strengthen further during the coming quarters.

Exporters added that access to competitively priced imported cotton has become increasingly important for sustaining yarn export competitiveness, particularly as global buyers remain highly price sensitive amid weak downstream demand.

Short-term outlook

Regional cotton trade is expected to remain active in the near term as mills across South Asia continue securing imported fibre amid uncertain crop prospects. Any easing of India’s import duty, coupled with Pakistan’s rising import dependence, could keep international cotton demand sentiment firm in the coming months.