Export earnings fall below target in Q1

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Monira Munni The country's overseas shipment of merchandise fell below target by 1.61 per cent 14 months after it had been set, during the first three months (quarter 1) of the current fiscal year. Export earnings also slowed down to 22.56 per cent with the earning of $6.16 billion in July-September of 2011-12 fiscal, Export Promotion Bureau (EPB) data showed. EPB had set a target of earning $6.26 billion for the first three months. In July-June of 2009-10 fiscal, export earnings witnessed a negative growth of 7.93 per cent of the target although the overall earnings grew by 4.11 per cent compared to the corresponding year of 2008-09 fiscal. Overseas shipment grew by 41.47 per cent in July-June of 2010-11 fiscal, which was also 23.92 per cent higher than the target, officials have said. Export earnings grew by 30.44 per cent in July-August of 2011-12 fiscal when the shipment stood at $4.71 billion. The single month of September's earning in 2011 slowed down to 2.29 per cent, while shipment grew by 32.40 and 28.79 per cent in August and July 2011 respectively. The September earning is 22.63 per cent lower than the target of $1.87 billion. EPB officials said earnings from the major sectors such as knitwear, woven garments, frozen fish, jute and jute goods also slowed down mainly due to the recent global economic meltdown. According to the EPB statistics, the knitwear sector fetched nearly $2.57 billion in July-September of this fiscal, registering an 18.26 per cent growth over the corresponding months in the previous fiscal. Export earnings from woven garments totalled $2.23 billion, marking a rise of 24.82 per cent. It is 1.12 per cent lower than the target set for the period. During July-August, knit and woven wear sector's earning grew by 29.64 and 33.54 per cent. "The declining trend in the apparel sector is the result of economic recession," president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shafiul Islam Mohiuddin told the FE. "The demand for apparel items has decreased leading to a sudden fall in price worldwide because of the global economic meltdown," he said hoping that the trend might see a reversal at the year end. The export of primary commodities fetched nearly $300 million, frozen foods $186.39 million, and agricultural products fetched $114.04 million. The export of specialised textiles, including terry towel, was in the negative territory with an earning of only $35.56 million.