Home ›› 14 Dec 2022 ›› Front
Home textile export earnings dropped by 7.98 per cent to $518 million in the first five months of FY23 year-on-year due mainly to the gas crisis hampering production as well as the global economic and political crises.
The Export Promotion Bureau (EPB) data shows earnings from this sector were $564 million in the same period of FY22. The export target for this period in FY23 was $743 million.
The data also shows bed and kitchen toilet linen export earnings dipped by 4.93 per cent to $235 million in the July-November period of FY23, which were $246 million in the same period of the previous fiscal year.
On the other hand, other home textile item export earnings were down by 10.36 per cent to $284 million during the said period, which were $316 million in the same period of FY22.
Commenting on the matter, Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon said consumers’ purchasing power had reduced due to the ongoing global crisis, causing orders from the US to drop slightly.
“However, our gas crisis has improved a little, and buyers are also placing new orders.”
Industry insiders said the sector had received huge export orders in the last fiscal year, thanks to uninterrupted production even during the Covid-19 pandemic.
But due to the Russia-Ukraine war, the global supply chain was disrupted, creating severe economic crises across the world. When the crisis hit Bangladesh, gas and electricity supply was disrupted, which cut textile mills’ production by up to 40 per cent.
“We regularly run three shifts, but the energy crisis compelled us to reduce it to two. On most days, we had to keep production suspended between 7pm and 5am due to low gas pressure,” a senior official of Noman Group, the largest textile producer in the country, told The Business Post. “We failed to meet shipment deadlines due to slow production, and that is why buyers are also placing fewer orders.”
Towel Tex Managing Director, also the chairman of Bangladesh Terry Towel and Linen Manufacturers & Exporters Association, M Shahadat Hossain Sohel said Russia was their emerging market and export earnings from the country were gradually increasing.
“But due to the war, our exports have almost come to a halt, which is also a key reason for the negative export earnings in the sector,” he added.
The wait for January
Sector insiders said they participate in the international trade fair for home and contract textiles, which is held in Germany’s Frankfurt, every year and receive a good number of work orders. The upcoming exhibition will be held between January 10 and 13 next year.
Meanwhile, brands are now offering various discounts to clear their stocks ahead of Christmas. For this reason, Bangladeshi exporters are expecting a sales bonanza in the fourth quarter of this fiscal year.
They said Russian buyers have also started placing orders, which will help home textile export earnings grow.
“Though we now have a tough time due to low export earnings, I think every exporter will make good profits after January,” Sohel said.
“But to keep buyers’ confidence and remain competitive, ensuring uninterrupted gas supply is a must,” he added.
