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Apparel export recovery in the non-traditional markets is slower compared with that in the traditional markets as the Covid pandemic has taken a heavy toll on the economies of Latin American countries and India.
According to Export Promotion Bureau data, the earnings from readymade garment exports started rebounding, overcoming the impact of Covid-19 and the earnings in the July-April period of current financial year 2020-21 grew by 6.24 per cent to $26.00 billion.
Although the RMG exports to the European countries grew by nearly 7 per cent and to the United States by 8.54 per cent in the 10 months of FY21, the earnings in the non-traditional markets registered a minimal 1.15 per cent growth.
The data showed that RMG exports to the non-traditional markets in July-April of FY21 increased to $4.26 billion from $4.21 billion in the same period of the previous fiscal year of 2019-20.
Exporters said that the major countries of non-traditional export destinations, including India, China, Brazil and Chile, suffered heavily due to the pandemic and it would take time to rebound the export to the markets.
Except Australia, Russia and South Africa, export earnings still remained negative in all most all the non-traditional markets.
RMG exports to India in July-April period of FY21 declined by 9.64 per cent to $368.16 million while the exports to China fell by 22.52 per cent to $228.25 million in the period.
The data showed that Bangladesh’s apparel exports to Brazil in the 10 months of FY21 declined by 37.28 per cent to $62.89 million and the shipment to Mexico decreased by 16.86 per cent to $120.94 million in the period.
Earnings from Japan in the July-April of FY21 fell by 4.52 per cent to $802.11 million while the RMG export to Chile declined by 23.60 per cent to $65.48 million in the period.
‘Export recovery in non-traditional markets is going slow due to the worst situation of the Covid-19 outbreak in some destinations, including Brazil and India,’ Md Shahidullah Azim, vice-president of the Bangladesh Garment Manufacturers and Exporters Association, told New Age on Sunday.
He said that it would take time but the exports would rebound in the non-traditional markets.
Shahidullah hoped that the Bangladesh would be able to attract the orders those were shifting from China, India and Myanmar and the country’s (Bangladesh) export earnings from RMG might top $31 billion in the current fiscal year.
Despite the negative impact of Covid-19, RMG exports to Russia and Australia, among the non-traditional markets, maintained a satisfactory growth.
RMG exports to Russia in the July-April of FY21 grew by 31.60 per cent to $474.58 million from $360.61 million in the same period of FY20.
The data showed that the apparel exports to Australia in the 10 months of FY21 increased by 18.62 per cent to $625.86 million from $527.60 million in the same period of the previous fiscal year.
