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Earnings from merchandise exports from Bangladesh surged 41.13 per cent year-on-year to $4.85 billion in January, the second-highest single month receipts, on the back of rebounding garment shipments.
Shipments soared 30.34 per cent year-on-year to $29.54 billion in the first seven months of the current fiscal year, data from the Export Promotion Bureau (EPB) showed yesterday.
Exports from Bangladesh are hovering around higher levels as western economies are turning around from the severe fallouts of the coronavirus pandemic.
In December, exporters raked in $4.9 billion, an all-time single-month high.
The takings were $4.16 billion in September, $4.72 billion in October, and $4.04 billion in November, thanks to the government’s bold decision to allow factories to run most of the time during the pandemic, as it fetched more orders.
As usual, apparel shipments, which account for about 85 per cent of the national overseas earnings, contributed to the higher receipts in January.
Garments brought home $4.09 billion in the month, up 42.5 per cent from the $2.87 billion posted in the same month a year ago.
Apparel shipments swelled 30.3 per cent to $23.98 billion during the July-January period. Of the sum, $13.27 billion came from knitwear shipments, up 32.89 per cent year-on-year, and $10.71 billion from woven exports, an increase of 27.23 per cent.
“The big jump in garment shipments is likely to continue as we have had more work orders this year compared to last year,” said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association.
The single-month garment shipment crossed the $4-billion mark for the first time in December and the suppliers were able to keep up the momentum last month as well because of the strong comeback of both woven and knitwear items.
Hassan also attributed the higher external sales to the price hike of garment items following the spike in raw materials prices worldwide and the recovery in major export destinations.
He expressed satisfaction at the improving services at the Hazrat Shahjalal International Airport and Chattogram port.
Between July and January, the earnings from frozen and live fish exports grew 22.6 per cent to $377.94 million, agricultural products 26.63 per cent to $748.99 million, pharmaceuticals 20.93 per cent to $117.11 million, and leather and leather goods by 29.66 per cent to $682.74 million.
Non-leather footwear exports was up 25.84 per cent to $249 million, cotton yarn and fabrics grew by 45.79 per cent to $127.49 million, terry towel by 25.10 per cent to $29.16 million and home textile by 30.01 per cent to $831.31 million, according to the EPB.
Mustafizur Rahman, a distinguished fellow of the Centre for Policy Dialogue, said exports showed a bigger jump from July to January compared to the corresponding period last year, when earnings were lower.
Moreover, the prices of exported goods increased to some extent as buyers are paying more to exporters who came under immense pressure following the increase in the cost of production caused by the price hike of raw materials globally, he said.
“The economic recovery in major export destinations is also a major reason for the export rise from Bangladesh,” Rahman added.
However, jute and jute goods, a promising export item, did not fare well as shipments declined 9.13 per cent to $695.73 million during the seven-month period.
Abul Hossain, chairman of the Bangladesh Jute Mills Association, blamed the anti-dumping duty imposed by India, nearly 50 per cent price fall worldwide owing to the pandemic, and the stringent conditions that have barred most millers from securing stimulus loans, for the lower-than-expected jute goods shipment.
He also blamed the high price of raw jute in the local market amid the crisis and the global demand fall.
(TDS)
