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RMG industry to fail meet the 50b export target by FY21

Bangladesh’s export earnings from the apparel sector in the FY 2020-21 would be US$ 11b less from the US$ 50b target set by the govt, a recent estimate of textile and jute ministry revealed this information.

BD RMG fail to meet $50b export target
Figure: Bangladesh’s export earnings from the apparel sector in the FY 2020-21 would be US$ 11b less from the US$ 50b target.

The estimate shows that the earnings from RMG in the FY21 would be $38.73 billion, against US$50 billion targets.

To mitigate this situation, the government has taken a move to set export earnings target at $51 billion from textile and clothing sector including RMG, packaging and accessories and home textile as export trend showed that US$50 billion targets by FY 21 would not be achieved alone from RMG, high officials of the government and the textile and apparel industry people said.

The government has set earnings target from RMG at $32.69 billion for the current financial year and it would exceed the target but the earnings for the FY 20 would be $35.62 billion against the target of $44.68 billion for the fiscal.

As part of the move, the textile and jute ministry on 26 December held a meeting with the stakeholders to find out the deficits and the possible solutions.

Representatives from different government agencies including Department of Textile, Bangladesh Textile Mills Corporation and private sector trade bodies including Federation of Bangladesh Chambers of Commerce and Industry, Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, Bangladesh Textile Mills Association, Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association and Bangladesh Specialized Textile Mills & Powerloom Industries Association held an urgent meeting.

The government has set earnings target from RMG at $32.69 billion for the current financial year and it would exceed the target but the earnings for the FY 20 would be $35.62 billion against the target of $44.68 billion for the fiscal.

“We have discussed the re-fixation of export targets for the textile and clothing sector with the inclusion of accessories, home textile, and terry-towel sub-sectors. Along with the export earnings target, stakeholder placed some recommendations to increase export,” Textile Secretary Md Mijanur Rahman said.

The meeting highlighted the production of high value-added diversified products including suit, women wear, sportswear, intimate wear, and swimming wear to face the challenges of a present shortfall of export. Weakness in infrastructures including road communication and port also discussed in the meeting.

Also Read: RMG export target sets at $32.69 billion for FY19

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