Both the Export Promotion Bureau (EBP and the Bangladesh Bank have presented contrasting data on apparel export earnings by Bangladesh during the period spanning July-May ’23-24.
While the Export Promotion Bureau (EPB) reported a 2.85 per cent growth in apparel exports earnings during the period, figure from the Bangladesh Bank (BB) indicate a 5.2 per cent decline in RMG earnings for the same period.
According to BB's corrected data, Bangladesh earned $33.04 billion from RMG exports in the first eleven months of FY 2023-24, compared to $34.86 billion in the previous year. This represents a significant downward revision from EPB's earlier estimate of $43.85 billion for the same period. Compared to $42.63 billion the previous year, The EPB's figure indicates a 2.86 per cent growth.
Conversely, BB's calculations show a 5.3 per cent decline in net income from garment exports to $17.60 billion from $18.58 billion the previous year. Additionally, revenues from woven products decreased by 5.1 per cent to $15.40 billion from $16.22 billion the previous year, as per the BB data.
Exporters believe, various factors contributed to the decline in income from the garment industry. One of these includes the significant decline in the unit cost of garments, alongside a slight downward trend in work orders due to global political unrest and the Russia-Ukraine war.
Mohammad Hatem, Executive President, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), affirms, rising fuel, electricity, and gas prices have increased production costs. However, buyers have failed to raise their product prices. Consequently, exporters have been unable to secure orders, he explains. Alack of cooperation from banks and harassment by customs and revenue officials is further weakening the competitiveness of these exporters, he adds.
Global political unrest, the Russia-Ukraine war, and the economic slowdown are also leading to a negative growth in export earnings in Bangladesh, adds Hatem.
SM Mannan Kochi, President, Bangladesh Garment Manufacturers and Exporters Association (BGMEA), adds, issues like increased production costs, including higher worker wages and electricity and fuel prices, are making it challenging for exporters to compete on price. Compounding this issue is the reduction in product prices by buyers, leading to a decline in exports.
To sustain positive growth in export earnings, the government needs to ensure uninterrupted gas and power supply, adds EPB.
