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RMG exports increase to $3.31bn in July


Published : 21 Aug 2019 09:03 PM | Updated : 07 Sep 2020 05:14 AM

Export earnings from readymade garments (RMG) increased to US$3.31 billion by 21.72 percent in July this year over the corresponding period of the preceding year. This sector brought more than 85 percent of the total earnings worth  $3.89 billion in the month. The inflow was $3.02 billion in the same period last year. The exports in this sector also exceeded the fixed target by 3.03 percent during the month. The target was $3.21 billion for the period.

Experts attributed the increase in earnings to the devaluation of taka against dollar and pound. The growing demand for local apparel — better in quality and low-priced—has pushed the exports further up. Export earnings from the woven rose by 9.51 percent to $1.63 billion in the month from $1.49 billion in the same period of the previous year. On the other hand, the knitwear export stood at $1.67 billion during the period, posting a 9.89 percent growth from $1.52 billion over the same period in 2017.

Woven and knitwear export earnings crossed the target by 0.29 percent and 5.85 percent respectively. The figures were $1.62 billion (woven) and $1.58 billion (knitwear) respectively. However, readymade garment (RMG) export witnessed robust growth in the just-concluded fiscal increasing by 11.49 percent due to different initiatives undertaken by the government.Higher rates of US dollar and improving product quality also contributed to the steady rise, experts said.

The earnings, which in the previous 2017-18 fiscal were $30.61 billion, stands at $34.13 billion now.The RMG accounted for 84.2 percent of $40.53 billion in total export earnings during the last fiscal.The RMG exports also exceeded the $32.69 billion export target, or 4.42 percent growth target, set for the fiscal year. More than 84 percent or $37.42 billion of the total export earnings is expected to come from the readymade garment (RMG) sector for the fiscal year 2019-20, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) officials said.

BGMEA President Rubana Huq said, “We need to focus on certain areas to expand the RMG sector which is aimed at more earnings.”She said, “We need to be aware of the current market trend and carefully study all the possible options of value addition and product diversification to attract more orders from foreign buyers.”

Abdus Salam Murshedy, President of Exporters Association of Bangladesh (EAB), said that export earnings from developed countries like the USA and UK have significantly increased, which is good news for Bangladesh. He noted that the country now is capable of making the best quality products at low prices, which will help enhance export earnings even more from developed countries, thus giving a boost to the country’s economy.

Murshedy also said that the government should take work more actively to reduce trade barriers with the developed countries, with the intent to increase exports further.