Hometex exports bounce back after two sluggish FYs

The country's home-textile exports bounced back in the current fiscal year after a continuous negative growth for the last two FYs, riding mainly on increased orders by global buyers.

Bangladesh fetched US$577.99 million during July-February period of FY 2024-25, recording about 5.23 per cent growth, according to official data of the Export Promotion Bureau (EPB).

This is the fifth largest foreign currency-earning sector that bagged US$ 851 million in the FY 2023-24, registering a 22.05 per cent negative growth.

Export earnings from the sector declined by 32.47 per cent in FY 2022-23 to US$1.09 billion, down from US$1.62 billion in FY 2021-22.

Talking to the FE, Md Rashed Mosharrof, executive director of sales, marketing and operation at Zaber and Zubair (Home), said exports of home textile have been growing since last April amid rising global demands.

He said exports faced setbacks in the previous FYs mainly after the Covid-19 pandemic due to the Ukraine-Russia war while the situation has started getting better as customers believe an improved global situation with the Trump administration in office.

Besides, fall in oil prices also pushed down the prices of cotton, resulting in a rise in global sales of hometex items, he added.

He, however, claimed that they were still struggling to cope with the rising production cost which has eaten up their profit margin as they are getting lower prices despite the increase in work orders.

January to March is the lean period for home textile, he noted.

Z&Z Fabrics Ltd, a concern of Noman Group, alone exports around US$200 million annually. They are one of the largest producers of home textile items in the country, he noted.

Textile millers claimed that the sector has been suffering significantly from the gas crisis as many of them cannot use up to 50 per cent of their production capacity due to gas supply shortage.

Some textile mills, including Momtex, have been closed down due to the liquidity crisis, they said, adding that a good number of mills are on the verge of shut down for various reasons, including the gas crisis.

When asked, M Shahadat Hossain, former chairman of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association (BTTLMEA), said that though there are ample opportunities, Bangladesh could not achieve the desired growth mainly due to corruption.

He alleged that the situation has improved but not to the fullest and they have to face a number of hassles related to customs.

"We source almost all raw materials, including yarn and chemicals, from the local market to produce towels and other hometex items thanks to the local backward linkage industry. Despite that we have to face difficulties and bear additional costs at customs," he added.

Bangladesh has huge potential in Canada, EU, Australia, China and Japan where it enjoys duty free facility, he said, adding that in the coming months more orders are expected to come with the political change in the US.

According to Bangladesh Textile Mills Association (BTMA), more than a dozen of home textile mills are registered with the association having a combined production capacity of around 550 million metres annually.

There are also a good number of home textile mills associated with the BTTLMEA.

Home textiles such as bed-sheets, bedcovers, pillow covers, cushion covers, curtains, rugs, quilt, kitchen aprons, gloves, napkins and tablecloths are exported mainly to the EU countries while some products are also exported to the USA, Canada, Japan and Australia, according to the trade bodies.

Munni_fe@yahoo.com