Export earnings took a hit of mainly inspection and compliance issues beginning from mid last year, as it saw negative growth last month.
In October this year, overall export earnings declined by 7.7% to almost $2bn compared to $2.2bn in the same month a year earlier, according to the Export Promotion Bureau (EPB) data released yesterday. The figure is nearly 20% lower than the target of $2.5bn for the month.
The export earnings from the readymade garments sector plunged for the second consecutive month, registering a 9.7% to $1.5bn fall in October this year compared to the same period a year earlier, which affects on overall earnings.
Most of the major sectors have also missed the export targets set by the government for the same period and also faced negative growth in their earnings compared to the same period of the previous year.
Industry people attributed this dismal performance of export earnings to impact of GSP (Generalised System of Preference) suspension by the USA, order pullout by the overseas buyers on safety concern and political unrest that hampered production and delayed shipment.
“This is the negative impact of compliance and inspection issues made by the Accord and Alliance during the period,” BGMEA Vice President Shahidullah Azim told the Dhaka Tribune.
“But now the situation has changed,” he said.
He hoped export earnings would increase in February onward, because buyers start to place orders as the situation on safety concern has improved a lot in the recent period.
Echoing Azim, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mohammad Hatem Ali said: “It is the reflection of inspection made by the Accord and Alliance, as the inspection hit production.”
He said safety issues created image crisis of the country in the world during the time, also contributing to the fall of export earnings. “Taking stock of the situation, our competitors also became active to garb apparel markets of Bangladesh.”
EPB data showed that in the past three months (July-October), earning from the apparel sector fell 1.7% to $7.8bn compared to $7.9bn in the corresponding period of the last year.
During the period, knitwear posted a 0.9% positive growth or over $4bn but earnings from the woven products plunged 4.4% to $3.7b. With the earning fall this month, negative earnings of woven products extended for the third consecutive month.
During July-October this year, overall export earnings fell slightly 0.9% to $9.7bn, which was $9.8bn in the same period last year. The country also failed to meet the target by 7.5%.
In the first 10 months of the current fiscal year, earnings from jute and jute products were down 2.4%, followed by specialised textiles 23.7%, frozen foods 8%, pharmaceuticals 6.5%, vegetable 21% and leather 10.7%.
Among other major sectors, earnings of agriculture products posted a fall of 22%, followed by tea 48.5%, plastic 38.8%, rubber 19.6%, leather products 17.4%, footwear 20.4% and electric products 131%.
