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RMG export earnings lift 26% in July-August FY2022

Home textile and specialized textiles sub-sector contributed significantly in total export

Bangladesh’s readymade garment (RMG) export earnings have once again shown tremendous resilience growth in July-August of the current financial year (FY) FY2022-23. According to Export Promotion Bureau (EPB) data, in July-August of the current FY FY2022-23, Bangladesh’s RMG export earnings reached $7.11 billion – increasing by 26.1% compared to the same period of the previous year which was $5.64 billion in FY 2021-22.

Among the RMG exports, two main products i.e. Knitwear and woven sector earnings reached $3.91 billion and $3.19 billion respectively. In the July-August period, Knitwear product export registered a 20.15% growth. While the woven garments export achieved an astonishing 34.23% growth.

Knitwear-woven-export-earnings-July-August-FY2022-23

However, Apparel sector entrepreneurs opined reservations regarding apparel growth. As of August of FY 2021-22, exports were relatively low due to COVID restrictions. 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 opined.

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. According to the industry people, it is mainly due to the increased price of raw materials, increases in the cost of freight transportation and some orders from China shifted to Bangladesh.

They also think that the current order decline is a short-term problem, and the recession will not last long.

Entrepreneurs are not yet seeing any negative impact on orders in this sector. Rather, they have plenty of 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.

Textile and apparel sub-sector export earning scenario

Home textile also has a significant contribution to Bangladesh’s export after RMG. According to EPB, home textile exports were worth $268.5 million in two months, which is 53.39 percent higher than the same period of the previous financial year.

Home-textile-specialized-textiles-earnings-July-August-FY2022-23

Among the sub-products of Home textile, bed and kitchen toilet lines exported $96.97 million in July-August of FY2022-23. While terry towel earned $7.42 million. Observed a 17.97% growth.

Specialized textiles export earned $39.31 million in July-August of FY2022-23. Observing a mammoth 73.17% growth. Among the sub-products of specialized textiles export – Special woven fabric earnings reached $5.08 million with a 29.92% growth rate. Knitted fabrics earnings reached $21.82 million with a staggering 98.72% growth rate in the first two months of FY2022-23.

Cotton and cotton products (yarn, waste, fabrics, etc.) products earned $48 million in July-August of FY2022-23. Witnessing a 71.74% growth.

Jute and jute goods

Jute and jute goods export earned $156.61 million in the first two months of FY2022-23. Witnessing a 22.67% growth.

Leather and leather products

Leather and leather products export earnings reached $223.23 million in the July-August period. Observing a 27.77% growth.

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