Export plunges to year's lowest in April as apparel shipment sinks
Saturday, 6 June 2009
Mashiur Rahaman
Bangladesh exports plunged to the year's lowest monthly figure in April, as shipment of apparel items nosedived due to the impact of the global economic recession.
The country shipped merchandise worth $1176.29 million during the month, which is $104.07 million less than the earnings of the same period last year, the Export Promotion Bureau (EPB) said.
The dramatic fall weighed on the annual export trend, with growth of shipments dipping to a meagre 12.76 per cent in ten months, down from 19.38 per cent at the end of December.
"The ready-made exports have fallen sharply in April, dragging down the month's entire shipment figures. Both woven and knitwear exports have suffered due to the fallout of the global meltdown," an EPB senior official said.
Officials and manufacturers said the steep slide is an indication of what's the country's biggest industrial sector is going through amid a slump in demand for their products in Europe and North America.
"The trend clearly shows dismal export outlook. We don't think that the situation will improve in the remaining two months of the fiscal year," the EPB official said.
Abdus Salam Murshedy, the head of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said "the decline is disturbing" and can cause havoc in the industry if the government does not bail it out.
"April's figure will end all doubts about how bad the situation is in the apparel sector. We told the government that we have been facing a debacle, but so far they have ignored our demand," he said.
The BGMEA, which represents more than 2700 manufacturers, has already demanded 10 per cent cash incentives on the actual amount of their exports and an interest payment fund to ease their debt burden.
"Our hope is that the government should study April's export data and come forward with a comprehensive package. We need government's help to save hundreds of thousands of jobs," he added.
The country's more than 4500 apparel makers employ more than 2.5 million people, some 85 per cent of whom are women. They also account for more than 40 per cent of Bangladesh's industrial workforce.
Experts have said a massive fall in apparel exports would wreck mayhem in the banking and financial sectors, as they have heavy exposure to read-made garment manufacturing and its allied sectors.
Despite the April fall, shipment of woven garments witnessed 17.13 per cent growth in the first 10 months of current fiscal year, the EPB data showed.
Knitwear garments recorded a 19.08 per cent growth in July-April, although its growth came down to less than 20 per cent for the first time in over two years.
The country earned $12.82 billion in the first ten months in the FY 2008-09, which is far short of the government's target of $13.10 billion for the period.
"It means that no way we can achieve the target in the remaining two months of the fiscal year," the EPB official said.
Leading export items including jute, frozen food, vegetables, leather and tea have also been hit by the global recession as their slide continued in April.
The country last year exported goods worth $14.11 billion, recording a year-on-year growth of nearly 16 per cent.
Bangladesh exports plunged to the year's lowest monthly figure in April, as shipment of apparel items nosedived due to the impact of the global economic recession.
The country shipped merchandise worth $1176.29 million during the month, which is $104.07 million less than the earnings of the same period last year, the Export Promotion Bureau (EPB) said.
The dramatic fall weighed on the annual export trend, with growth of shipments dipping to a meagre 12.76 per cent in ten months, down from 19.38 per cent at the end of December.
"The ready-made exports have fallen sharply in April, dragging down the month's entire shipment figures. Both woven and knitwear exports have suffered due to the fallout of the global meltdown," an EPB senior official said.
Officials and manufacturers said the steep slide is an indication of what's the country's biggest industrial sector is going through amid a slump in demand for their products in Europe and North America.
"The trend clearly shows dismal export outlook. We don't think that the situation will improve in the remaining two months of the fiscal year," the EPB official said.
Abdus Salam Murshedy, the head of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said "the decline is disturbing" and can cause havoc in the industry if the government does not bail it out.
"April's figure will end all doubts about how bad the situation is in the apparel sector. We told the government that we have been facing a debacle, but so far they have ignored our demand," he said.
The BGMEA, which represents more than 2700 manufacturers, has already demanded 10 per cent cash incentives on the actual amount of their exports and an interest payment fund to ease their debt burden.
"Our hope is that the government should study April's export data and come forward with a comprehensive package. We need government's help to save hundreds of thousands of jobs," he added.
The country's more than 4500 apparel makers employ more than 2.5 million people, some 85 per cent of whom are women. They also account for more than 40 per cent of Bangladesh's industrial workforce.
Experts have said a massive fall in apparel exports would wreck mayhem in the banking and financial sectors, as they have heavy exposure to read-made garment manufacturing and its allied sectors.
Despite the April fall, shipment of woven garments witnessed 17.13 per cent growth in the first 10 months of current fiscal year, the EPB data showed.
Knitwear garments recorded a 19.08 per cent growth in July-April, although its growth came down to less than 20 per cent for the first time in over two years.
The country earned $12.82 billion in the first ten months in the FY 2008-09, which is far short of the government's target of $13.10 billion for the period.
"It means that no way we can achieve the target in the remaining two months of the fiscal year," the EPB official said.
Leading export items including jute, frozen food, vegetables, leather and tea have also been hit by the global recession as their slide continued in April.
The country last year exported goods worth $14.11 billion, recording a year-on-year growth of nearly 16 per cent.