Bangladesh pitifully keeps banking mainly on six exportable items and four markets in its external trade over the years apparently for failing to effectively implement the plans for diversification of the export basket and overseas market.
Officials and analysts deplore that the country's export earnings are still dependent largely on limited items and countries as years of government efforts to diversify both its product and market bases have not yielded any visible outcome.
They found a good prospect of a boost in the export trade under the global trading regime but pointed out that poor product campaign and lack of market diversification left a number of quality products almost unnoticed in the outside world.
Although there are as many as 750 products on the list of exportable, about 85 to 90 per cent of the annual export receipts come from only six items, including apparels, frozen foods, jute and jute goods, and leather products, according to official data.
Similarly, the country receives a lion's share of its export receipts from four destinations, including the European Union and the United States, the Export Promotion Bureau (EPB) data figures revealed.
In July-June period of the just-past fiscal year (2013-14), the aggregate export earnings from six products stood at US$27.49 billion as against the country's total export earnings of $30.17 billion.
Export earnings from the six products were $24.43 billion in the FY 2012-13, while the total turnover was $27.02 billion that fiscal.
During the FY 2011-12, earnings from these products stood at $24.30 billion against the total earnings of $24.30 billion.
The aforesaid six products fetched $20.796 billion in the fiscal year 2010-11, against the total export earnings of $22.924 billion, official figures showed.
In the fiscal 2009-10, earning from the products was $14.472 billion against the total earning of $16.204 billion. In the fiscal 2008-09 the said six products earned about $13.727 billion against the total earning of $15.565 billion.
On the other hand, the country made nearly 85 per cent of its total shipments to only four global markets in the fiscal year 2013-14. Of the export consignments, the US received 23.54 per cent, the EU 54.36 per cent, Canada 3.64 per cent and Japan 2.86 per cent.
The rest 19.11 per cent went to 184 other minor destinations, the officials said.
They said the ministry of commerce, with financial support of the World Bank, launched Bangladesh Export Diversification Project (BDXDP) on August 1999 to integrate Bangladesh in the global economy through promotion and diversification of exportable.
But, the sources said, the project was later jettisoned due to 'unsatisfactory' performance.
Besides, the government had provided cash subsidy for a number of products and also introduced incentives for encouraging exports to new markets. But, again, no tangible outcome was there, according to experts.
Exporters and trade officials expressed their disappointment that neither the number of exportable items nor the export destinations could yet see a much-needed expansion.
In view of the situation, they emphasised effective product campaign on the non-RGM products to introduce local quality items to the global markets.
Exporters said the government should come forward with a plan of action to increase competitiveness of the local products and explore the untapped markets across the world. The plan should consider the present energy situation and low infrastructure facilities in the country.
They strongly feel that the government's policy support is needed to change the entire export scenario, including opening new missions, branding the local products, and cash support for the potential sectors.
"Almost 90 per cent of our foreign-currency revenue comes from six sectors only, though there are about 750 products which are generating revenue right now," EPB Vice Chairman Shubhasish Bose said.
He admitted that now is the time to go for product and market diversification in right earnest.
The state-owned EPB has already taken national action plan to diversify products and explore new markets, a senior EPB official said about a fresh move.
The government has listed ten products, including software and ship, to tap new markets and diversify the country's exports.
Besides, processed agro-items, electric and home appliances, footwear, furniture, luggage, paper, pharmaceutical products and rubber are among the products to be exported to new destinations, he explained.
Jashim Uddin, president of Bangladesh Plastic Goods Manufacturers and Exporters Association (BPGMEA), said the sector failed to grab the potential global market mainly for absence of government policy support though the sector has the potential to become as largest as the garment sector.
The light engineering sector also has a huge potential but failed to grab the world market for lack of government patronage, a local manufacturer said.
Dr Khondaker Golam Moazzem, additional research director of Centre for Policy Dialogue, said the steps taken by the government -- either strategic or operational--are not sufficient to diversify both products and markets.
"Now it is time for the government to provide policy support to the non-RMG products. Those are small suppliers and they need networking, match making, information sharing to popularise their products to the world," he said.
He suggested aggressive government-to-government negotiations to remove or reduce the tariff barriers, especially to the non-traditional markets, facing the non-traditional products.
The government should organise more trade fairs and exchange of missions to various destinations according to the demand of products, he said.
Also, the policy researcher recommends providing cash incentives and fund arrangement through the EDF fund.
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