Sajjadur Rahman
Bicycle exports have marked a sharp drop in recent months due to the ongoing global financial meltdown that rocked the developed countries since mid-last year, said government data and industry people.
Western countries, especially the European Union, are the main importers of Bangladesh-made bicycle.
“We are getting news that some of our buyers may be in deep trouble soon,” said MA Halim Khan, executive director of Meghna Group, the leading exporter of locally made bicycle.
“Global economic slowdown has caused a decline in bicycle demand in Europe,” said MMA Tanvir Titash, managing director of Uniglory Cycle Components Ltd, a maker of bicycle components.
According to the Export Promotion Bureau (EPB), the country exported bicycles worth Tk 59.93 crore in September 2008, which came down to Tk 38.29 crore in October and further dipped to Tk 23.65 crore in November.
EPB data show Bangladesh exported bicycles worth $64.28 million in fiscal year 2007-08, up by 18.93 percent from $54 million in fiscal 2006-07. Exports marked a 63 percent rise in July-November period in the current fiscal year over the same period last fiscal. The country exported around five lakh pieces of bicycles in 2007-08, industry people said.
Bicycle, which falls in light engineering sector in Bangladesh, has got increasing popularity in Europe due to its lower price. According to industry people, on an average a Bangladeshi bicycle costs $80 to $90, which is much higher than that of a China-made one.
Bangladesh is now manufacturing MTBs (mountain bikes), city bikes, free styles, trekking, folding, beach cruiser and kid bikes.
Currently, world’s some of the leading companies including Raleigh, Avocet Sports, PCM, and Motor and Sports of the UK, Aldi of Holland, Bachtenkirch Interbike of Germany, M&F De Scheemaeker and Formula Cycling of Belgium are importing bicycles from Bangladesh.
“Export may decline further this year as the buyers are not placing more orders,” Tanvir Titash said.
Halim Khan said none is immune from the current financial crisis. He however said November to February is generally considered as dull season for the bicycle industry.
Currently, Meghna Group, M&U and Alita, a Malaysian company located in Chittagong Export Processing Zone, are engaged in bicycle export. Another big manufacturer — German Bangla Bicycle Limited at Savar — has recently started production and export.
Courtesy: thedailystar.net
