According to recently published Export Promotion Bureau (EPB) data, Bangladesh’s readymade garment (RMG) export in October grew by 53.27% to $3.56 billion year-on-year in October.
Of the RMG, knitwear products export fetched $2.04 billion, while woven items fetched $1.51 billion, both registering over 52% growth from a year-ago period.
Apparel exporters said this stunning rebound is boosted in courtesy of relocation of work orders from China and increased production cost there. While Vietnam, India, and Myanmar witnessed export disruptions owing to Covid-19 and political instability.
At the same time, RMG leaders said that a good amount of payment has come from deferred LC shipments, those were suspended owing to Covid-19 is also the reason for the export rise.
With the reopening of the US and EU economies, buyers from these markets ordered bulk quantity apparel to sell them in the run-up to Christmas.
At the same time, the buyers offered better prices for apparel ‘made in Bangladesh’ as they have taken into account the higher freight cost and prices of raw materials.
From July to October of FY 2021-22 – the first four months of the current FY – the garment sector exported $12.62 billion worth of items, increasing by 20.78% year-on-year.
But they warned of self-satisfaction as the local RMG industry has to work together for its continuation.
Also, in the coming days, Bangladesh’s RMG will face challenges in coming days in maintaining shipment schedules as most apparel exporters have faced a shortage of working capital as buyers are paying them after up to 180 days of sending goods.
On top of it, raw materials prices have gone high, but their credit limits are not adjusted with it.
Experts opined that if banks do not increase the credit limit, the apparel sector will not sustain in business in the coming days.