Merchandise export earnings see double-digit growth in May

The country's single-month merchandise-export earnings in May 2025 witnessed a double-digit growth of 11.45 per cent year on year to fetch US$4.73 billion due to the sustained performance of ready-made garment industry.

Bangladesh earned $4.25 billion in May 2024, according to the Export Promotion Bureau (EPB) data released on Tuesday.

Earnings from ready-made garment (RMG) exports in May 2025 amounted to $3.91 billion, up from $3.50 billion in May 2024, representing a monthly growth of 11.85 per cent.

The overall exports, however, stood at $44.94 billion during the July-May period of FY 2024-25, reflecting a 10-percent year-on-year growth.

Bangladesh fetched $40.85 billion during the same period of the last fiscal year, the data showed.

RMG sector maintained its dominance as Bangladesh's largest export earner contributing $ 36.55 billion registering a 10.20-per cent increase over the same period last fiscal year.

Within the RMG segment, knitwear exports rose by 10.98 per cent to $19.61 billion, while woven garments grew by 9.30 per cent to $16.94 billion.

Home textiles marked a 4.78-per cent growth to $824.58 million during the first eleven months of the current fiscal year.

When asked, Mahmud Hasan Khan, managing director of Rising Group, said the performance could be higher if there was no gas supply disruption, especially in May.

He is also the panel leader of the Forum that won the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) biennial election for the 2025-27 term with the highest 31 posts of director out of 35.

Mr Khan said the overall work orders situation is good and backward linkage suppliers have affected due to the disruption causing some delays in shipments.

Talking to the FE, Fazlul Hoque, former president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), termed the growth 'good and normal', saying that there is nothing big change.

Responding to a question, he said it would take some more months or August onwards to understand the US new tariff regimes impact saying there is on average a 50:50 arrangement between most US buyers and local exporters that each of them would share half of the additional 10 per cent duty burden for the interim period.

Meantime, earnings from jute and jute goods exports continued to struggle as it recorded a 4.77-percent decline to fetch $ 769 million during the July-May period.

However, monthly figures showed a slight improvement, with May export rising 16.79 per cent year-on-year.

Earnings from leather and leather products registered a 12.55-percent year-on-year growth, earning $1.05 billion during the first eleven months of FY'25.

Leather footwear export earnings increased by 28.96 per cent to $620.17 million.

Agricultural products earned $927.56 million, showing 3.17 per cent growth during the July-May period of FY25 but in May alone, exports fell by 8.15 per cent compared to May 2024.

Talking to the FE, agricultural products exporters, however attributed that a number of factors including cut in cash incentive by the government, high import costs for most of the agricultural inputs and other ingredients mostly used for processing foods, paucity of required air spaces coupled with higher freight charges for the declining trend in the sector's performance.

Frozen and live fish exports recorded 17.53 per cent growth to earn $410.19 million during the July-May period of FY'25, led by shrimp shipment that increased by 16.75 per cent to $273.16 million. Engineering product recorded 12.40 per cent growth and earned $498.23 million.

Plastic product exports stood at $270.16 million during the first eleven months of FY25 marking 18.62 per cent growth.

munni_fe@yahoo.com