April exports see negative growth with $3.91b

Merchandise exports from Bangladesh so far this fiscal missed targets and April earning of US$3.91 billion recorded an annualised negative growth of 0.99 per cent.
Export Promotion Bureau (EPB) data released Thursday revealed that last month's earning also fell short of target by 16.78 per cent.
The government set a target of US$4.70 billion in monthly export earning for April this year, the tenth month of the fiscal year 2023-24.
Out of the total $3.91 billion worth of April earnings, readymade garment (RMG) alone fetched US$3.29 billion, registering a 1.0-percent negative growth in its share, too.
The overall export trade of the country during the past ten months of the current fiscal year (FY) from July to April, however, marked a growth by 3.93 per cent to US$47.47 billion year on year.
But the earnings fell 6.87- percent short of the target set for the period.
During the July-April period of FY 2022-23, Bangladesh had earned US$45.67 billion, the EPB data showed.
As usual, apparel shipments overwhelmingly dominated the invoice in both cases because of lack of major breakthroughs in governmental emphasis on diversifying the export basket and market.
Out of the total US$47.47 billion, RMG fetched US$40.49 billion during the July-April period of 2023-24, marking a 4.97-percent year-on-year growth.
The knitwear sub-sector earned US$22.87 billion in a 9.11-percent growth and woven wears fetched US$17.61 billion, almost same as the earnings in corresponding period, according to the EPB data.
On the downside, the home-textile subsector witnessed a decline of 25.32 per cent during the last July-April period, with earnings amounting to $702.56 million.
Asked about the trade performance, Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said it was expected that April shipment might record a negative growth due to more than a week of Eid holiday.
Responding over work orders, he said work orders are coming to Bangladesh in recent months but still this is not to the satisfactory level.
"But we can't receive all the work orders as buyers are offering prices that are below the cost of production," he notes, in an implicit reference to situations in the export destinations which are also passing through economic volatility.
Fazlul Hoque, managing director of Plummy Fashions Ltd, says in recent times China is more desperate than Bangladesh for grabbing the orders and it is offering lower prices.
In contrast, Bangladesh has no chance to go desperate in this regard as recent rises in wages, utility charges and other costs have pushed up the production cost, he notes.
"Even the forecast also gives the indication of further hike in gas prices," he told the FE, about probable fuel-price hike.
According to the EPB data, exports of jute and jute goods during the period under review amounted to $716.44 million, registering a fall of 7.05 per cent.
Earnings from agricultural items like vegetables, fruits and dry foods, however, registered a growth of 6.12 per cent to $774.49 million during the ten months.
Export earnings from engineering products slightly decreased by 0.04 per cent to $436.35 million during the July-April period while frozen and live fish exports decreased 13.34per cent to $321.93 million.
The country received $872.45 million from the export of leather and leather goods in July-April, registering a negative growth of 13.32 per cent.
Pharmaceutical exports fetched $169.62 million, in a 17.25-percent growth.
Exports of footwear other than leather items also increased 8.71 per cent to $425.15 million.
The EPB data also showed that exports of plastic products posted a 17.87- percent growth, reaching $201.09 million.
Bangladesh in the last fiscal year bagged a record-high $55.55 billion in earnings from merchandise exports, riding on a double-digit growth for readymade garments.

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