Brazil seeks to expand cotton trade deal with India, eyeing export gains

A delegation comprising representatives from Cotton Brazil, the Brazilian Cotton Producers Association (Abrapa), the National Cotton Exporters Association (Anea), and ApexBrasil is accompanying the agenda of President Luiz Inácio Lula da Silva and Agriculture and Livestock Minister Carlos Fávaro on their trip to Asia. The goal is to negotiate an expansion of the preferential trade agreement between Mercosur and India, in force since 2009, to, among other objectives, increase cotton exports to the country.

The Brazilian government’s aim is to expand the current list of 450 products with tariff discounts to up to 4,000, including vegetable oils, cotton, ethanol, beans, and fruits, as well as machinery, equipment, and rare earths, among others. According to Abrapa, the sector’s focus is to reduce import tariffs on Brazilian cotton from 11% and to establish zero-tariff quotas.

“We believe that the potential to export to India with lower tariffs could reach 300,000 tonnes per year. That represents around USD 500 million in revenue for Brazil from the Indian market alone,” said Abrapa vice president Celestino Zanella. In the 2024/25 marketing year, Brazil exported 160,000 tonnes of cotton to India.

On container trade, Brazil exported 4,498 TEUs of cotton-related products worldwide, according to recent Datamar data. The following chart provides a monthly comparison of Brazilian cotton export volumes, compiled using data from the DataLiner platform.

Cotton Exports | Jan 2022 – Dec 2025 | TEUs

Source: DataLiner (click here to request a demo)

India is one of the world’s largest cotton producers and home to the second-largest textile industry globally. The sector has intensified trade and technical missions to India since 2024. Since then, Brazilian cotton exports to India have risen from 8,000 tonnes to 160,000 tonnes, increasing Brazil’s share among exporting origins from 4% to 24%.

“Our goal is to strengthen strategic partnerships, promote traceability and sustainability of Brazilian fiber, and consolidate Brazil as a reliable supplier for the Indian textile industry,” said Fernando Rati, manager of Cotton Brazil.

The business delegation will hold meetings with representatives of India’s Ministry of Textiles to present a study on synergies between the two countries in the sector.

After the presidential agenda, the representatives will visit India’s main industrial hubs for the Cotton Brazil Outlook, a series of events and workshops aimed at promoting Brazilian cotton.

Activities begin in New Delhi, continue to Ahmedabad and Coimbatore—traditional textile centers—and conclude in Mumbai, where the agenda runs through the 28th.

Source: Globo Rural

Sharing is caring!