Export earnings fall by 11.49 percent in August

Dhaka, Sept 9 – Export earnings in the second month (August) of the current financial year 2019-20 fell by 11.49 per cent to $2.84 billion from $3.21 billion in the same month of the last fiscal, due to lower shipments of the apparel items. According to Export Promotion Bureau, export earnings from the RMG sector in the first two months (July-August) of FY2019-20 fetched $5.71 billion, decreased by 0.33 per cent to $5.73 billion in the same period of FY 2018-19.
Exporters said that readymade garment exports in August 2019 fell by 0.33 per cent because of Eid vacation as most of the factories remained close for at least seven days. Moreover, some of the factories were even remained close for 12 days which influenced the export performance, exporters added.
However, they also hopeful that order quantities will pick up, particularly in the knit sector and for a knock-on effect of the US-China trade war.
“We invested around USD 4 billion in workplace safety and occupational health hazards. The depreciation of our currency against all other foreign currencies has also helped businesspersons, especially those who are associated with export business, to earn more money,” Faruque Hassan, former senior vice-president of Bangladesh Garment Manufacturers’ and Exporters’ Association (BGMEA) told Journalists.
Faruque Hassan, managing director of Giant Apparels Ltd, said that a total of 90 Bangladeshi RMG factories have received Leadership in Energy and Environmental Design (LEED) certification from the US Green Building Council (USGBC) and such modernisation of the industry will boost foreign buyers’ confidence.
Woven products earned USD 2.79 billion in July-August of this fiscal year 2019-20, marking a 0.94 per cent negative growth from the same period in the previous fiscal year which was USD 2.82 billion. The Knitwear industry earned around $2.92 billion during the same time, up by 0.27 per cent from the same period last year which was $2.91 billion.
According to the EPB, for the first two months (July-August) of FY 2019-20, exports of agricultural commodities, such as tea, vegetables, and tobacco, registered a negative growth of 24.36 per cent and fetched USD 134.4 million.
EPB officials said that the export of leather and leather products bounced back, with the sector registering a positive growth rate of 1.32 per cent.
EPB data shows that the growth rate of jute and jute goods exports has decreased drastically and reached a negative growth 0.43 per cent. This sector earned USD 130.57 million in the FY 2019-20 (July-August) compared to USD 131.14 million in the FY 2018-19 (July-August).
Industry experts said that India has slapped anti-dumping duty on jute sacking cloth from Bangladesh, triggered by a spike in its import following the imposition of similar duty on sacks and products in 2017.
EPB data shows that the growth of furniture exports has decreased and reached a negative growth of 13.77 per cent. This sector earned USD 10.02 million in the FY 2019-20 (July-August). – Staff Reporter