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Bangladesh has recorded its highest single-month export earnings at $4.16 billion in September this year thanks to a strong rebound of garment shipments amid a recovery of the global supply chain from the severe fallout of the Covid-19 pandemic.
The September data showed exports earnings climbed 38 per cent year-on-year from $3 billion the previous year.
Exporters registered previous two highs in 2019: $3.67 billion in January and $3.8 billion in May.
Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association, said earnings from garment shipments increased mainly for the reopening of the Western economies from the severe fallout of Covid-19.
With the reopening of the economies, demand for woven garment items also started growing.
Demand for woven garment items, mostly worn outdoors, fell significantly because of people staying at home for longer periods, which in turn increased the use of the comfortable knitwear items such as polo shirts and t-shirts.
“We are expecting the trend of positive export growth of garment items from the country will continue in the coming months as we have already received more than the expected work orders from international clothing retailers and brands,” said Hassan.
With the September earnings, total export earnings in the first quarter of the current fiscal year beginning from July stood at $11 billion, registering 11 per cent growth over $9.89 billion during the July-September period of the previous fiscal year.
Of the earnings in the three-month period of the current year, $9 billion came from garment items, which registered 11.4 per cent growth year-on-year.
Knitwear accounted for some $5.16 billion, 16 per cent year-on-year growth.
Shipment of woven items also registered strong positive growth after nearly one and a half years with the reopening of the economies, especially in the West.
Woven garments fetched $3.89 billion, registering a 6.35 per cent year-on-year rise.
Hassan said customers’ confidence in Bangladeshi garment items improved a lot because of remediation carried out at factories based on recommendations of the Accord and the Alliance, which brightened the country’s image.
Bangladesh has the highest number of green factory buildings and came in second in terms of ethical sourcing destinations among international buyers, according to an audit report of supply chain compliance solutions provider QIMA.
A lot of work orders are now being placed with Bangladesh by international retailers and brands while the prices being paid have also increased.
But the price rise is coming to little benefit as the cost of raw materials like cotton, yarn and chemicals and freight charges have also increased.
Hassan demanded for services to improve at the Chattogram port and Hazrat Shahjalal International Airport to sustain the current pace of exports of garment items.
In the three months, frozen and live fish export also increased by 16 per cent year-on-year to $152.6 million, agricultural products 27 per cent to $344.5 million and pharmaceuticals 33 per cent to $56 million, data by EPB showed.
Leather and leather goods, one of the main export earners, posted 20.5 per cent year-on-year growth to $271.34 million.
However, some sectors like jute and jute goods and non-leather footwear could not perform well in the July-September period.
(TDS)
