The country’s export earnings stood at $22.91billion in the first seven months of the ongoing fiscal year (FY2019-20). This earning decreased by 5.21 percent compared to that in the corresponding period of the previous fiscal of $24.17 billion, according to Export Promotion Bureau (EPB) data.
The strategic target of the total export earnings set for this period of the current fiscal also decreased by 13.00 percent which was $26.34 billion. Market analysts said, export earnings showed negative growth for appreciation of taka, economic slowdown in Europe and trade tension between the US and China.
Besides, price negotiation is another big reason to slow down export growth, they added. Former senior vice president of Bangladesh Garment Manufacturers and Exporters Association, Faruque Hassan said, buyers are maintaining a conservative approach due to uncertainty over Brexit and trade war between the US and China.
As part of its move, the production cost went up and the makers were unable to grab orders from the competitors, he said. Official data show export earnings from readymade garments, which accounts for almost 84 percent of the total export earnings, went down by 5.71 percent to $19.06 billion during the July-January period of the current fiscal from $20.21 billion in the corresponding period of the previous fiscal.
On the other hand, export earnings from agricultural products stood at $603.91million during the time, up by 4.19 percent over $579.61 million earned in the same period of the previous fiscal. However, the plastic sector witnessed a negative growth amounting to $66.42 million during the time, which was 0.95 percent lower during the same period of previous fiscal.
Meanwhile, export earnings from jute and jute goods, engineering equipment, rubber and handicrafts, also saw a positive growth.
The figures were $602.49 million, $40.18 million, $17.61 million and $13.23 million respectively However, the leather sector needs special care for a rebound as it is facing huge difficulties to compete in the global market. Export earnings from this sector stood at $558.9 million during July-January in FY2020, which was 10.82 percent lower than that in the same period of the previous fiscal.
During the first seven months of FY19, the figure was $626.42 million. Besides, ceramic products, wool and woolen products and frozen and live fish also witnessed a negative growth during the period.