Exports grow by 14% in August

Bangladesh’s exports earning in August, the second month of the current fiscal year, rose by 14 per cent to $3.38 billion.

According to the Export Promotion Bureau (EPB) data released on Thursday, Bangladesh exported goods of $3.38 billion in August, up by 14.02 per cent, which was $2.97 billion in the same period of last fiscal year.

The figure, however, is 8.84 per cent less than the target of $3.71 billion set for August.

Meanwhile, exports earning during the July-August period of FY22 declined by 0.31 per cent to $6.85 billion, which was $6.87 billion in the same period of last fiscal year.

Exporters said that Bangladesh’s regular export destinations reopened after a long time after completing mass vaccination and it was one of the reasons behind the export growth.

They expect that the growth will continue.

The exporters also consider that present exports earning is almost equal to that of the pre-Covid-19 period.

Mohiuddin Rubel, a director of the Bangladesh Garment Manufacturers and Exporters Association, said the export growth in August was a result of the celebration of Eid-ul-Adha in the previous month. “Export growth usually declines in months of Eid as shipments are often pushed back to the next month,” he said.

Export of readymade garments, the largest export earning sector in Bangladesh, however, grew 11.56 per cent, which was negative in the month of August 2020. This sector earned 81.37 per compared to the total export earnings.

Average export growth in July-August declined by 1.27 per cent, and 6.16 per cent behind the official target for the two months.

In August, exports earning from the RMG sector stood at $2.753 billion, which was $2.468 billion in August 2020. However, in July, this sector earned $3.244 billion which is 11.02 per cent negative compared to July, 2020.

According to the EPB, the woven garments sector earned $1.152 billion, which was $1.104 billion in August, 2020. On the other hand, the knitwear sector earned $1.600 billion with 17.29 per cent growth, which was $1.365 in the previous year.

Fazlee Shamim Ehsan, vice president of Bangladesh Knitwear Manufacturer and Exporters Association (BKMEA), thinks the rise of raw materials and freight costs also contributed to show the export figure high. “The net profit of the exporters became low,” he said.

“Our regular export destinations are returning to normalcy. It is one of the reasons for export growth,” he told The Business Post.

The home textile sector is also continuing with positive export growth for the past two months. Earnings from this sector in July-August are $175 million with 4.18 per cent growth, which was $168 million in July-August of 2020.

In the first two months of the FY 2021-22, leather and leather goods sector is continuing with export growth. This sector earned $174.71 million with 12.91 per cent growth in the two months and it was $154.74 million in the same time of FY 2020-21.

On the other hand, export earnings from the jute and jute goods sector continue with a downtrend in the

past two months. Exporters said the buyera did not place new orders because of high raw jute prices in the previous season.

“At present, the farmers harvested their new raw jute and the prices quite tolerable. We expect we will get new orders and export earnings will increase,” Esrat Jahan, a director of the Bangladesh Jute Goods Exporters Association told The Business Post.

According to the EPB, exports earning from the jute and jute goods sector in July-August is $127.67 million with a 34.66 per cent decline.

In July-August 2020, it was $195.39 million.