Exports see robust growth in January

Bangladesh’s export earnings have jumped by 41.13 per cent to $4.85 billion in January of FY2021-22 when compared year-on-year, riding on a better than expected performance from all major sectors except jute and jute goods.

The figure is nearly 20 per cent higher than the $4.05 billion target for the month of January, and a significant increase compared to $3.44 billion recorded in January of FY2020-21, according to the Export Promotion Bureau (EPB) data released on Wednesday.

A rise in demand for apparel goods due to improved economic activities and a relative ease in the Covid-19 pandemic situation expedited this export growth.

Moreover, during the July-January period of the current fiscal year, Bangladesh’s overall export earnings rose by 30.34 per cent to $29.54 billion, which was $22.67 billion in the same period last FY.

Commenting on the matter, former lead economist at the World Bank Dhaka office Zahid Hussain said, “Export earnings have increased, but we cannot predict how long Bangladesh will be able to sustain it.

“But it is true that the export sector has turned around, and it is obviously a good sign for our economy. The pandemic’s impacts and political crisis in our competitor countries have helped us achieve this growth.”

Agriculture product exports recorded a 26.63 per cent growth to $749 million against $591 million in the same period last FY. Among such products, vegetables earned $60 million and tobacco $77 million.

Leather and leather product earnings showed a 29.66 per cent growth to $683 million, which was $527 million last FY. Leather product exports rose by 37.41 per cent to $183 million, followed by leather footwear by 25.79 per cent to $414.52 million.

Frozen and live fish exports increased by 22.6 per cent to $378 million riding on shrimps. The food item earned $295 million posting a 34.29 per cent growth.

Non-leather footwear exports rose by 25.84 per cent to $249 million. Engineering products earned $489 million, up by 58 per cent, compared to $310 million in the same period a year ago.  Bicycles contributed $90.44 million to engineering products.

Pharmaceuticals products, an emerging sector, earned $117 million, while the plastic sector fetched $87 million, up by 38.7 per cent, compared to $63 million.  Furniture exports rose to $59 million.

The RMG sector, the largest contributor to national exports earnings, posted a 30.3 per cent growth to $23.98 billion, compared to $18.40 billion in the same period a year ago. Of the total earnings, knitwear products earned $13.27 billion, while woven products fetched $10.71 billion.

Due to high prices of raw materials, apparel production costs increased. But the buyers readjusted the rates, which in turn caused an increase in RMG product prices. This is why the sector’s export earnings increased during the July-January period, industry insiders explained.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Director Abdullah Hil Rakib said, “Due to the pandemic, buyers did not purchase clothes for around one and half years.

“Demand had increased when the restrictions eased, but at the same time, China began facing several crises. Because of this reason, buyers are now looking towards Bangladesh as an alternative sourcing hub.”

“But this trend will decline at the end of this year. So, we should now focus on developing the quality of our products and ensure fair prices,” he added.

Home textile, the second largest export earner, has recorded a 30.1 per cent growth to $831 million. Specialised textile earned $216 million, which was $76 million last FY.

M Shahadat Hossain, chairman of the Bangladesh Terry Towel & Linen Manufacturers & Exporters Association, said, “Yarn prices doubled since last year, and our production cost has gone up too.

“If the government lowers the yarn import duty to 2 per cent to 3 per cent, we will then be able to post more export earnings.”

Jute and jute goods sector, the fourth largest export earner in Bangladesh, posted a negative growth by 9.13 per cent to $696 million, which was $766 million in the same period last fiscal year. But raw jute exports have increased by 39.33 per cent to $134 million.

Esrat Jahan Chowdhury, CEO of Tulika Ltd and director of the Bangladesh Jute Goods Exporters Association, said, “We are falling behind our competitors in terms of marketing policy, and there is not enough research in this sector.

“Besides, our export destination countries are facing several crises. It is one of the main reasons behind the earnings’ decrease.”