RMG exports slow down in September

Staff Correspondent        
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Export receipts shows crashing down in the month of September on the back of lower shipments of garment products after registering a record high in August. Last month, exports raked $2.03 billion, which are 10.18 percent less from a year earlier and 44.23 percent less from August.

Figure1: Showing export earnings in billion USD, Source: EPB
Figure1: Showing export earnings in billion USD, Source: EPB

According to data from the Export Promotion Bureau, September’s earnings missed the monthly target set by the commerce ministry by $750 million. Lower shipments of garment products, which typically account for 80 percent of the total export receipts, have been blamed for the slump in September’s export earnings.

According to the latest data of Export Promotion Bureau (EPB), export earnings in the first quarter are 2.84% less than the target of $8.91 billion set for the period. The data reveals that the RMG sector earned $7.14 billion, which is 7.17% higher compared to $6.66 billion in the same period a year ago. Knitwear products earned $3.75 billion, a 10.18% up, and woven garments earned $3.39 billion, a 4.04% up compared to $3.26 billion in the corresponding period last year.

Figure2: Showing export earnings in the first quarter of the mentioned fiscal years. Source: EPB
Figure2: Showing export earnings in the first quarter of the mentioned fiscal years. Source: EPB

“One of the reasons for the slowdown in garment exports last month is that it coincided with Eid-ul-Azha, so the factories remained shut for a long stretch”, said Siddiqur Rahman, President of the Bangladesh Garment Manufacturers and Exporters Association.

Abdus Salam Murshedy, President of  Exporters Association of Bangladesh said, “Our export industry is undergoing a critical moment. Since Bangladesh is slowly moving towards its $50 billion export target (by 2021), there must be a monetary policy for the industry to remain combative in the global market.”

“The government should concentrate on reducing transportation costs, ensuring better infrastructural facilities and take initiatives to build deep-sea ports”, he added.

Shipment of jute and jute goods grew 15.46 percent to $236.12 million, which is 5.87 percent below the target for the July-September period. Home textile export  also grew 23.81 percent during July-September to $193.69 million, according to EPB data.

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