Export earnings in July, the first month of the current financial year, posted a negative growth of 1.37 per cent year-on-year after 23 months of positive growth as the export growth of garment products dropped in the month. In the first month of the current financial year, the export earnings fell by 2.03 per cent to $2.98 billion from the government-set target of $3.04 billion, according to the Export Promotion Bureau data released on Monday.
Experts said Bangladesh had faced difficulties in the US market and two other competitive countries were getting hold of more ground in the market.
Exporters, however, said that the negative growth in the export earnings was an impact of the ongoing safety inspection at the garment factories.
The EPB data showed that after a negative growth of 17.89 per cent in the month of August in the financial year 2012-13 the export earnings growth in July of the FY15 posted a negative growth for the first time.
The earnings in July fetched $2.98 billion against $3.02 billion of the same period of FY14.
The EPB data showed that the export earnings from woven in July fell by 4.14 per cent to $1.21 billion against $1.26 billion in the same period of the last financial year while the knitwear export amounted to $1.30 billion with a 4.32-per cent growth against $1.25 billion in the same period of the financial year 2013-14.
Mustafizur Rahman, executive director of Centre for Policy Dialogue, told New Age that it would be premature to come to a conclusion about the overall export situation based on the data for one month but it is true that Bangladesh faced trouble in the US market.
‘Product diversification within the RMG is needed for more market share in the globe as our competitors have changed their strategy and emphasised on the export of readymade garments,’ he said.
Mustafizur suggested strengthening of the supply chain and addressing of the suggestions that came from the global retailers’ groups after safety assessment in the factories for a sustainable export growth.
Former president of the Bangladesh Garments Manufacturers and Exporters Association Anwar-ul Alam Chowdhury Parvez said that the negative export growth in the RMG products was likely to continue till December as buyers were in confusion over the impact of the ongoing factory inspection.
Buyers are taking time to place order and some are decreasing the volume of the order as they want to see the final report of the factory inspection which is being conducted by the platforms of EU and North American brands and retailers, he said.
‘We are not worried about the situation. I think the sluggish export growth will not linger and a good fortune is waiting for the country’s RMG sector after the completion of the safety assessment at the factories,’ Parvez said.
He, however, said that Bangladesh RMG sector witnessed a negative export growth but the exports of India and Vietnam had increased as buyers shifted some orders to the countries due to confusion over the impact of factory inspection.
Frozen foods export grew by 7.17 per cent to $65.19 million in July of the FY15 from $60.83 million in the FY14.
Leather and leather products export grew by 14.82 per cent to $109.14 million in the first month of FY15 from $95.05 million in the FY14.
The July figure was 14.82 per cent lower than the target of $128.13 million set by the government.
Home textile export fell by 13.15 per cent to $59.19 million in the first month of the FY15 from $68.15 million in the same period of the FY14.
The export of jute and jute products fell by 23.92 per cent to $60.98 million in July of the FY15 from $80.15 million in the same period of the FY14.
The export earnings from engineering products including iron steel, copper wire, stainless steel ware, engineering equipment, electric products and bicycle amounted to $28.93 million with a 12.33-per cent negative growth.
The export earnings from plastic products in July of the current financial year grew by 5.42 per cent to $7.97 million and the earnings from pharmaceuticals grew by 31.23 per cent to $7.27 million.
According to the EPB data, the export earnings’ growth turned sluggish in the last six months of the recently concluded financial year 2013-14.
Out of the last six months of the FY14, five months witnessed single digit growth in the export earnings. Only in April the export earnings posted double digit growth.
Though the export earnings in the FY14 stood at $30.17 billion and registered an 11.65-per cent growth, the earnings were 1.06 per cent lower than the target of $30.50 billion due to poor growth in June (3.50 per cent).
-With New Age input
