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Azerbaijan’s Cotton Sector Undergoes Shift Amid Changing Trade Dynamics

July 22, 2025 – Baku

Azerbaijan exported $116.96 million worth of cotton in the first half of 2025, marking an 11.3% decrease compared to the same period in 2024, according to data released by the State Customs Committee.

At the same time, cotton imports reached $4.95 million — a 10.8% increase year-over-year — reflecting shifting trends in domestic consumption and textile production.

Between January and June, cotton accounted for 0.9% of Azerbaijan’s total exports and just 0.04% of its total imports, underscoring the sector’s modest but strategic role in the national economy.

The decline in exports comes amid broader transformations in the global cotton market, with fluctuating demand, climate-related challenges, and evolving supply chain patterns affecting traditional producers.

Despite the drop in outbound trade, industry analysts suggest that increased imports could signal rising demand from domestic manufacturers — particularly in light of efforts to boost Azerbaijan’s textile and apparel sectors through industrial modernization.

The government has previously identified cotton as a priority sector within its agricultural diversification strategy, although current figures suggest that the industry is navigating a period of adjustment.

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