Apparel accessories makers fail to achieve export target

The country's apparel accessories and package makers have failed to achieve the export target of last fiscal year (FY), 2013-14, blaming political unrest and global economic recession for the setback, industry insiders said.
"We exported products worth US$ 4.75 billion last FY whereas the target was $ 5.0 billion," Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) president Rafez Alam Chowdhury told the FE.
"The growth rate of this sector has been more than 10 per cent for the last couple of years and this FY we are expecting to achieve a 15 per cent growth rate," he said.
Apparel accessories and packaging makers earned $ 4.10 billion in FY 2012-13, $ 3.50 billion in FY 2011-12, $ 2.75 billion in FY 2010-11 and $ 1.8 billion in FY 2009-10, BGAPMEA sources said.
Mr Rafez said: "We are now able to meet 95 per cent demand of readymade garment (RMG) accessories and packaging items for the RMG sector and other exporters also."
"The exporters are now easily getting this backward linkage support which was earlier entirely imported from abroad," he said.
BGAPMEA second vice president and chairman of its standing committee for customs Abdul Kader Khan said: "The Rana Plaza incident created a big impact on our export performance as after the incident buyers offered fewer orders than before."
"In the first half of FY 2013-14 we faced political unrest in the country which increased the transportation cost manifold and we also had to wait for raw materials from Chittagong."
"The cost of per trip of a truck from Chittagong to Dhaka increased to Tk 70,000 to 80,000 from Tk 15,000 to 20,000 during political turmoil. And we had to wait for four to five days for raw material transportation whereas we had spent only one to two days for it."  
Besides, high bank loan interest and global recession also created a negative impact on the sector, he said.
"We have the capacity to achieve the target but due to unfavourable situation we've failed to reach the target," he added.
The backward linkage industry makes around 35 items including button, carton, package, elastic, drawstring, embroidery, interlining, label, padding, poly bag, sewing thread, zipper, plastic items, back board, neck board, gum tap, bar code and so on.
The country's apparel accessories and packaging makers directly export only 15 per cent of the industry's total products and the rest 85 per cent are exported with other items like RMG, frozen foods, pharmaceuticals etc.
Relating to export target for the current FY, the BGAPMEA president said: "The export target for this FY is yet to be fixed. We are hopeful about fixing the target soon after the Eid-ul-Fitr vacation."
"Generally, we increase the target by 10 to 15 per cent from that of the previous FY," he also said.