In August of the current financial year FY2022-23, Bangladesh’s export was $4.607 bn which has increased by 36 percent compared to the same period of the previous year. According to Export Promotion Bureau (EPB), the export earnings in August of 2021-22 financial year was $3.383 bn. The government had expected exports of $4.3 bn in the just-ended August of the current financial year. Accordingly, the income is 7.14 percent more than the target. The key players in this growth are the RMG, home textiles and leather and leather goods sectors.
According to the EPB date, the RMG sector fetched $7.11 bn of the total $8.59 bn export income during the July-August period, posting a 26.1 percent growth over that of last fiscal. Knitwear earned $3.91 bn, registering a 20.15 percent growth and woven garments export have amounted to $3.19 bn up by 34.23 percent.
According to the industry people, it is mainly due to increased price of raw materials, increase in cost of freight transportation and some orders from China shifted to Bangladesh.
Apparel sector entrepreneurs opined that the last year in August, exports were relatively low due to COVID restriction. As a result, the y-o-y export growth rate is seen higher. But if m-o-m (month-on-month) calculations are made, then RMG exports have declined compared to July last year.
After the COVID crisis, demand increased in Bangladesh’s main export destination countries, so people started placing large orders. But the US and EU are facing record high inflation as the Ukraine-Russia war rages. Consumers cut back on purchases again. As a result, orders are falling and its reflection will be seen in the next two to three months, an industry leader said.
However, a section of RMG entrepreneurs and economists think that since Bangladesh produces more basic items of clothing and some buyers from China are coming to Bangladesh for various reasons, there may not be any major negative impact on orders in the coming months.
They also think that the current order decline is a short-term problem, and the recession will not last long.
Home textile also has significant contribution in Bangladesh export after RMG. Entrepreneurs are not yet seeing any negative impact on orders in this sector. Rather, they have plenty orders in hand. Several orders are coming to Bangladesh especially from Pakistan. They are expecting more orders because of the flood, an industry leader said.
According to EPB, home textile exports worth $268.5 mn in two months, this is 53 percent higher than the same period of the previous financial year. During the same period leather and leather products were exported worth $223.2 mn; the growth is about 28 percent. Export of jute products was worth $156.6 mn; the growth is about 23 percent.
