Desperate search for alternatives
Sunday, 28 March 2010
FE Report
Dependency on apparel export in the post-recession global economy has exposed Bangladesh's export earning to market vulnerability, pleading the government as well as related trade bodies to a desperate search for alternatives.
According to data revealed by the state-run Export Promotion Bureau (EPB), the country's 75 per cent trade at present remains dependent on one item, i.e readymade garments (RMG).
Taking advantage of cheaper labour forces, Bangladeshi apparel makers have successfully penetrated their products to international markets, particularly to America and Europe. But the recent global financial crisis has changed the entire scenario, sketching yearly export performance into negative territories for RMG products.
Knitwear, the largest export item earned US$6429.26 million in fiscal year 2008-09, a 16.2 per cent hike against its previous year.
But at the end of first six months of current fiscal year (2009-10) knitwear export dropped by 7.18 per cent against the corresponding period of last year, earning US$ 3007.95 million.
Similarly, export of woven garments also witnessed a negative response at the end of July-December period of fiscal year 2009-10, marked US$ 2582.66 million at 7.95 per cent fall. In FY 2008-09, woven garments worth US$ 5918.51 million, a 14.5 per cent growth from earning of FY 2007-08, EPB data revealed.
Hence, there is a very compelling need for diversification of export activities of the country as well as searching for new markets for non-conventional products.
Continued to page 12
Dependency on apparel export in the post-recession global economy has exposed Bangladesh's export earning to market vulnerability, pleading the government as well as related trade bodies to a desperate search for alternatives.
According to data revealed by the state-run Export Promotion Bureau (EPB), the country's 75 per cent trade at present remains dependent on one item, i.e readymade garments (RMG).
Taking advantage of cheaper labour forces, Bangladeshi apparel makers have successfully penetrated their products to international markets, particularly to America and Europe. But the recent global financial crisis has changed the entire scenario, sketching yearly export performance into negative territories for RMG products.
Knitwear, the largest export item earned US$6429.26 million in fiscal year 2008-09, a 16.2 per cent hike against its previous year.
But at the end of first six months of current fiscal year (2009-10) knitwear export dropped by 7.18 per cent against the corresponding period of last year, earning US$ 3007.95 million.
Similarly, export of woven garments also witnessed a negative response at the end of July-December period of fiscal year 2009-10, marked US$ 2582.66 million at 7.95 per cent fall. In FY 2008-09, woven garments worth US$ 5918.51 million, a 14.5 per cent growth from earning of FY 2007-08, EPB data revealed.
Hence, there is a very compelling need for diversification of export activities of the country as well as searching for new markets for non-conventional products.
Continued to page 12