Wouldn’t it be more economical to transport equally fine Egyptian cotton to the US instead? Or is the extra space on cargo ships the reason US cotton is exported?
In my experience, the decision to export US-grown Pima cotton to India and then re-import it hinges on leveraging lower processing costs and favorable tariff regulations in the destination. The profit increase often results not directly from the cotton itself but from the value-added services available in India. These may include more efficient processing methods or incentives that reduce the overall cost structure of the supply chain. It is important to conduct a detailed cost-benefit analysis specific to your operational parameters to ensure that the margins justify the additional logistics.