Export earnings fall by 11.66pc in Q1

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Mashiur Rahaman
The country's overall export earnings during the first quarter (July-Sept) of current fiscal year decreased by 11.66 per cent compared to corresponding period last year.
Total export earnings stood at US$ 3870.68 million during the July-September (first quarter) period of FY 2009-10 that was US$ 510.7 million less than the corresponding period of FY 2008-09, data revealed by the Export Promotion Bureau (EPB) showed.
Falling apparel export, followed by the country's leather, frozen foods, chemical and agro-based products largely contributed to the plunging effect, a senior official within the EPB told the FE.
"It appears that our major export markets are still vulnerable to the effects of global recession," he commented.
The earnings of Q1 of FY 2009-10 was also 10.60 per cent less than the US$ 4329.60 million target.
EPB data showed that export of country's knitwear products decreased by 9.67 per cent to US$1653.94 million in Q1 of FY 09-10. During the corresponding period of FY08-09 the country earned US$1830.90 million from knitwear exports.
Downward turn in knitwear export was followed by the woven garments as well. The country's export of woven garment during Q1 of FY 2009-10 was worth earned US$1376.63 million, dropping by 9.74 per cent from US$1525.13 million earned during the same period last year, the statistics explained.
"It reflects that the recession is not over yet," Bangladesh Knitwear Manufactures & Exporters Association (BKMEA) president Fazlul Hoque told the FE.
He termed the recession as one and only reason for this drastic fall.
The effect of global recession kept on tightening its grip over the country's export, mainly the apparel sectors for over a year; he said adding that it was predicted earlier by experts.
"Since we failed to take necessary action the recession's grip kept on further tightening. The substantial fall in Q1 of this fiscal is shaky reminder of what is coming," Mr Hoque explained.
Expressing concern over the Q1 export performance, the BKMEA president warned - 'Morning shows the day.'
He urged the government and all stake-holders related to the country's export sector to take the issue more seriously before it's too late.
"Though it's already late, we need to step in to find a solution before its too late," he added.
The export of home textiles in July-September period of FY09-10 dropped by 19.56 per cent earning $69.62 million. Similarly, export of leather and frozen foods also witnessed drastic fall during the period by 24.55 per cent and 37.92 per cent respectively compared to same period last fiscal.
Export of ceramics and pharmaceuticals products also dropped by 28.26 per cent and 5.04 per cent respectively, the export performance data revealed.
However, exports of raw jute, jute goods and melamine tableware during the Q1 of FY09-10 period showed a moderate growth, reporting an increase of 27.92, 5.18 and 158.33 per cent respectively.
Export of primary product during the Q1 of FY 2009-10 against the previous year was 21.10 per cent less.
Primary products contributed $219.47 million and manufactured products contributed $3651.21 million in the total export earning during the Q1 of FY 2009-10.