Turkiye and Pakistan Are Outsmarting India in Cotton Trade

Ram Ram Friends, in this article, we will talk about the cotton export market, specifically focusing on HSN Code 5205.

Note: All data shared here is based on the Trade Map website (2024).

As per the latest data for 2024, India is the top exporter of cotton (HSN 5205), followed by Vietnam, Uzbekistan, USA, Pakistan, Turkiye, Malaysia, and Indonesia.

But today, I want to compare India’s performance with Turkiye and Pakistan.

You might wonder why I haven’t included Bangladesh in this analysis. The reason is simple — Bangladesh, in my view, is already a lost case. If nothing changes politically, it may soon follow the path of Pakistan or even Syria. I’ve explained this perspective in detail in my article — do have a look.

Top Cotton Importing Countries for Turkiye:

• Portugal

• Egypt

• Italy

• Morocco

• Germany

• France

• Bulgaria

• Greece

• Spain

• Russian Federation

Now let’s look at how much India and Pakistan export to these countries compared to Turkiye.

Export Value in 2024:

Let’s compare the export value of cotton (HSN 5205) in 2024 from Turkiye, India, and Pakistan to these 10 countries.

As per the chart, India and Turkiye are very close in export value, however except for Portugal and Egypt, Turkiye performs better.

Market Share Comparison (Turkiye vs India vs Pakistan)

According to the data, 54.7% of Turkiye’s cotton exports go to just three countries: Portugal, Egypt, and Italy. In the next section, I’ll explain why India and Pakistan have failed to grow their exports in these three key markets.

Export Quantity in 2024: Turkiye vs India vs Pakistan

Again, we see that India and Turkiye are neck-and-neck in Portugal and Egypt, while Pakistan lags far behind in quantity.

Import Duties Faced by Turkiye, India, and Pakistan

Here comes the real game-changer.

• Turkiye faces 0% import duty in all these countries except Russia.

• India, on the other hand, faces 3% to 5% import duties.

• Pakistan enjoys 0% duty in most countries, except Egypt, France, and Russia.

So yes, I understand that India does not have a Free Trade Agreement (FTA) with the European Union, which gives Turkiye an advantage.

But here’s what doesn’t make sense —
Why are India’s exports to Egypt, Morocco, and Russia so low?
India and Russia are supposed to be strategic allies. India always called each other "best friends."

Here are the total export values in 2024 for Egypt, Morocco & Russia countries:

• Turkiye: $168.82 million

• Pakistan: $3.54 million

• India: $165.74 million

Also, Pakistan has zero import duty in Morocco, while India pays 2.5%. Why?

The Big Question: What’s Stopping India?

Yes, signing an FTA with the European Union might take time. But what’s stopping India from negotiating zero-duty access to:

• Russia

• Egypt

• Morocco

Especially when India already have good diplomatic ties with these nations, specially Russia?

Final Thoughts: India Needs to Act Now

I strongly believe that if India secures 0% import duties in Egypt, Morocco, and Russia, India's cotton exports will rise sharply — and that could hurt Turkiye and Pakistan’s market share badly.

Is India’s foreign policy ineffective when it comes to trade agreements?
Or have we simply ignored these important markets for too long?

It’s time to wake up. India is missing a massive opportunity despite being the world’s top cotton exporter.

Note: I haven’t personally traded in cotton yet, so I may be wrong in some of my observations. I genuinely welcome feedback, corrections, and insights from those with experience in this market.

Stay updated with more such articles by following me on LinkedIn or subscribing to my blog.

Ram Ram!

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