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Bangladesh export earnings grow by 0.76pc to $3.07b in Nov, RMG falls

Staff Correspondent | Published: 22:25, Dec 03,2020

 
 

A file photo shows workers sewing clothes at a readymade garment factory on the outskirts of Dhaka. The country’s export earnings grew by 0.76 per cent to $3.07 billion in November 2020 from $3.05 billion in the same month of 2019.— New Age photo

The country’s export earnings grew by 0.76 per cent to $3.07 billion in November 2020 from $3.05 billion in the same month of 2019.

Readymade garment export, however, fell for the second consecutive month in November year-on-year.

In five months (July-November) of this fiscal year 2020-21, export earnings’ growth was negative only in October, according to the Export Promotion Bureau data released on Thursday.

Exporters said that the country’s apparel export witnessed a meagre growth in August and September with the reinstatement of the cancelled orders by global buyers but the RMG export started declining again in October due to the second wave of COVID-19 pandemic.

The RMG export posted a decline of 2.66 per cent year-on-year in November, signifying the impact of lockdowns and slowdown in retail sales in the West, they said.

The country’s export earnings in the July-November period of FY21 grew by 0.93 per cent to $15.92 billion from $15.77 billion in the same period of FY20.

The EPB data showed that earnings from readymade garment exports in the five months of FY21, however, fell by 1.48 per cent to $12.89 billion from $13.08 billion in the same period of FY20.

‘After a free-fall of RMG export during March-May this year and struggle through June and July, export saw a meagre growth in August and September. Though the short lived recovery of export was contributed mostly by the reinstatement of the cancelled orders during the peak of the pandemic,’ Rubana Huq, president of the Bangladesh Garment Manufacturers and Exporters Association, told New Age.

Earnings from woven garments decreased by 8.29 per cent to $5.75 billion in July-November of FY21 from $6.28 billion in the same period of FY20.

Rubana said that the sales in Europe and the United States had dropped by 13 per cent in October as the consequence of the resurgence of the virus was apparently visible in global retail sales.

‘Such trend in retail is obviously alarming for the industry, particularly bringing the worrying context of global economy, trade, unemployment, and resulting impact on disposable income and spending, the solid recovery may still be far away,’ she said.

Export earnings from knitwear in the five months of FY21 increased by 4.80 per cent to $7.13 billion from $6.81 billion in the same period of FY20.

In November the growth of knitwear export was 4.9 per cent while export of woven garments fell by 10.48 per cent.

‘This is the 16th consecutive month for woven garment having a downfall in export. One of the reasons why knitwear could have retained some growth is the demand for clothing for home use and the peak season of sweaters which ended in September,’ the BGMEA president said.

Earnings from the home textile export in the five months of FY21 increased by 50.61 per cent to $449.79 million from $298.65 million in the same period of FY20.

Export earnings from leather and leather goods in July-November of FY21 fell by 8.32 per cent to $358.57 million from $391.09 million in the same period of FY20.

Export earnings from leather-footwear in the period decreased by 1.44 per cent to $226.84 million from $230.16 million while other leather products fetched $87.87 million with a 16.02-per cent negative growth in the period.

Export earnings from agriculture products in July-November period of FY21 grew by 0.25 per cent to $447.42 million from $446.32 million in the same period of FY20.

Export of jute and jute goods increased by 36.72 per cent to $553.43 million from $404.79 million, the data showed.

Export earnings from frozen and live fish decreased by 1.12 per cent to $232.48 million from $235.11 million while the shrimp export fell by 8.76 per cent to $163.01 million in the five months of FY21.

Export earnings from engineering products in July-November of FY21 grew by 43.09 per cent to $203.72 million from $142.37 million in the same period of FY20, the EPB data showed.

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