RMG exports to non-traditional markets dip

While the overall apparel export posted a 12.55 per cent growth, export earnings from non-traditional clothing markets showed a slower growth of 6.36 per cent in the just-concluded fi scal year. According to Export Promotion Bu-reau (EPB) data, Bangladesh’s apparel exports to non-traditional markets rose by 6.36 per cent to $5.08 billion in the fi scal year 202-21, which was $4.78 bil-lion in the previous fi scal.Of the total amount, knitwear prod-ucts earned $2.75 billion, which was 15.16 per cent higher than $2.39 billion posted in the same period of previous fi scal year.Woven products fetched $2.33 bil-lion, down by 2.44 per cent, compared to $2.39 in the same period a year ago.Australia, Brazil, Chile, China, India, Japan, Korea, Mexico, Russia, South Af-rica, and Turkey are the major non-tra-ditional countries for RMG exports from Bangladesh.The slower exports growth in non-traditional markets, compared to overall apparel exports, is mainly due to negative growth of woven products and slower recovery in the economy of these countries.Available data shows that woven products fetched $2.33 billion, down by 2.44 per cent, compared to $2.39 in the same period a year ago.Sharp export decline in Chinese and Brazil markets is another reason for the slower growth.According to EPB data, Bangladesh ex-ports to China declined by 17.78 per cent to $271 million while exports to Brazil de-clined by 33.66 per cent to $72 million.“Economic strength of the non-tra-ditional market is still weaker com-pared to the traditional market. These economies severely suff ered due to the Covid-19 pandemic, Fazlee Shamim Ehsan, vice president of Bangladesh Knitwear Manufacturers and exporters Association told The Business Post in reply to a question.“As the recovery is slow in those countries, the demands of clothing goods also remain slow.”Apart from that, a sharp decline in Chinese market, a major export desti-nation in the non-traditional category, also slowed the export growth, said the business leader.As China’s trading activities were largely halted due to the pandemic, the country met its domestic demands from the local sources, he added. “As a sourcing destination, we are not in the top list of importers of the non-tra-ditional markets. That is why, they placed less order amid the pandemic,” Abdus Salam Murshedy, Managing Di-rector of Envoy Textile told the Business Post while talking to The Business Post. As the market size of most of the non-traditional markets is still small they could manage to meet their respec-tive demands from their own domestic sources in the wake of the supply chain disruption, he added.In fi scal year 2020-21, Bangladesh apparel exports posted a 12.55 per cent growth to $31.45 billion, which was $27.94 billion in the previous year.On the other hand, overall exports earnings of the country stood at $38.75 billion, up by 15.10 per cent, which was $33.67 billion