India: Rising Brazilian cotton shipments intensify import competition

• Brazilian cotton exports to India increase more than 40-fold in two years
• Indian cotton consumption projected to reach record 5.77 mnt in 2026-27

India’s cotton import landscape is evolving as Brazilian shipments gain traction among domestic buyers, offering spinning mills an alternative to locally produced fibre. Brazil exported 353,820 tonnes (t) of cotton lint to India in the 2025-26 marketing year (August-July), accounting for around 10% of its total exports, according to the August 2026 Cotton Brazil Market Report.

Brazil’s expanding presence highlights the growing competition between imported and domestic cotton, with sourcing decisions increasingly influenced by quality, availability and landed costs.

Brazil strengthens its position in India

Brazil exported a record 3.37 mnt of cotton lint in 2025-26, up 19% y-o-y. Shipments to India increased more than 40-fold over two years, placing the country among Brazil’s significant export destinations alongside China, Bangladesh and Turkiye.

The growth reflects Brazil’s export capacity and Indian mills’ willingness to explore alternative origins when imported fibre offers competitive economics or meets specific quality requirements. However, rising shipments do not necessarily indicate a structural shift away from domestic cotton, as procurement depends on prevailing price differentials and mill requirements.

Indian demand supports sourcing opportunities

India’s cotton consumption is projected to reach a record 5.77 mnt in 2026-27, according to the report. Strong consumption could support imports when domestic supplies are insufficient or overseas cotton provides a cost or quality advantage.

However, import demand will remain sensitive to domestic crop availability, international prices, currency movements, import costs and textile industry demand. Brazilian cotton’s competitiveness against Indian cotton will therefore be critical in determining whether recent trade growth continues.

Lower Brazilian output poses supply risk

Brazilian cotton production in 2026 is forecast at 3.90 mnt, down 8.2% y-o-y, while planted area is projected to decline 8% to 2 million hectares, Abrapa’s August forecast showed.