Gas, power crises behind recent export sloth

FE Team | Published: October 18, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

Monira Munni Severe gas and electricity crises along with the EU economic meltdown have slowed down the country's merchandised shipment in recent times, exporters opined Monday. Their cost of production is increasing due to the severe gas and electricity crises. Besides, buyers are placing less order and prolonging time for receiving shipment of goods following the crisis in eurozone, they said. Exporters identified the problems in a monitoring meeting, organised to find out the causes behind the export fall and suggest ways to keep the overseas trade unhurt. The Export Promotion Bureau (EPB) called the meeting against the backdrop of a downward trend in export earning in September, when exports grew by 2.29 per cent only - the lowest in nine months of this calendar year. The country shipped goods worth $1.44 billion this month against the target of $1.88 billion, according to the EPB data. "We will analyse the problems raised by the exporters and submit a report to the Ministry of Commerce (MoC) within one or two days, recommending the probable solutions of the problems that the exporters focussed," EPB Director General R C Barman told the FE. Overall export in the first three months grew by 22.56 per cent, though export earnings slowed down and fell behind the target in September, MoC joint secretary (export) Monoj Kumar Roy said. "We want to address the problems before they become alarming," he said. Mohammad Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said the export fall was predicted earlier, as placement of orders from the international buyers was declining over the last few months. "Gas and electricity crises are the major internal problems, responsible for the declining trend," he said. Exports might decline further in the coming months, as the demand for garment items in the international market is also declining for the crisis in the EU. Besides, manufacturers could not make shipments, as many buyers are not ready to receive their shipments now, and they are extending the time. Moreover, local manufacturers are losing competitiveness in the international market due to increasing production cost, following hike in prices of petroleum products and power and energy tariffs, a garment manufacturer said. Frozen fish exporters said the sector also witnessed a falling trend for low demand of their items in the EU countries. Export of carpet declined due to volatile yarn market, according to jute sector insiders. The meeting said July-September earnings from frozen fish export fell by 12.86 per cent than the target, and that of woven by 1.12 per cent.