Bangladesh RMG exports again in positive territory

Bangladesh's ready-made garment (RMG) exports in August witnessed a robust 44.63 per cent growth year-on-year.

The positive development came after seven months of consecutive negative growth since January 2020.

The industry people, however, are not in an upbeat mood as the most shipments, according to them, comprise orders that were put on hold or cancelled in the previous months following the outbreak of the Covid-19 pandemic.

RMG exports last recorded a positive growth of 1.26 per cent in December 2019, according to data.

The garment export earnings in August stood at US$3.24 billion, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) data.

The BGMEA prepared the data from the National Board of Revenue (NBR) statistics on August 30. Bangladesh fetched $2.23 billion in August 2019.

Since the detection of the first corona infection in the country on March 8 last, apparel exports recorded the highest negative growth of over 82 per cent in April, as production in most apparel units remained suspended due to the pandemic-induced lockdown.

The country fetched $2.25 billion, $374.67 million, $1.23 billion, $2.24 billion and $3.24 billion in March, April, May, June and July respectively of this year, representing a decline of 20.14 per cent, 85.25 per cent, 62.06 per cent, 6.63 per cent and 1.98 per cent during the months between March and July of this year over the corresponding months of last year, according to the BGMEA data.

When asked, Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the good thing is that the growth has returned to positive territory.

It might be that like the month of July, the exporters in August last shipped a good portion of orders that had been kept on hold or cancelled since the coronavirus outbreak in the country, he explained.

Despite nearly one-week holiday due to the Eid-ul-Azha in August, goods amounting to over $3.0 billion were shipped in other days of the month, he added. Echoing Mr Hoque, Mahmud Hasan Khan, a former leader of the BGMEA, said majority of the shipments, made in August, were previously withheld or cancelled orders.

There were many manufacturers, who did not report to the BGMEA about these orders due to various reasons, and the orders are now being shipped.

About new orders, he said they are now receiving 15-20 per cent lower orders compared to last year.

Mohammed Hatem, senior vice president of the BKMEA, however, termed the growth 'unusual', claiming that many foreign buyers are not placing fresh orders now, and shipments of new orders will start from next month and onwards.

Responding to a question, the BGMEA President Dr Rubana Huq said a six-month average data would be a better depiction (of the export scenario) instead of this year on year-based monthly figures.

She said product-wise, cotton trousers have maintained the biggest share in terms of increase, while manmade fibre (MMF)-based product categories in tops have also started to see a growth.

"Especially women's cotton trousers have seen a significant growth, and their share in our total exports is also higher," she noted.

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