Home textile exports slump

European Union GSP facility for Pakistan, appreciation of the local currency against the US dollar and recent political turmoil are counted as major factors blocking the growth of country's potential home-textile exports.
Industry-insiders listed out these impediments as the export earnings from the sector almost stagnated during the last two fiscal years while it posted a negative growth during the first two months of the current fiscal year 2014-15.
The industry fetched $115.99 million in July-August period of the current fiscal, showing a 0.79 per cent negative growth compared to the same period of last fiscal, Export Promotion Bureau (EPB) data showed.
In the just-concluded fiscal year 2013-14, the country received $792.53 million from home-textile exports. The figure was $791.52 million in FY 2012-13.
Earnings stood at $906.07 million in FY of 2011-12, some $788.76 million in 2010-11, $539.28 million in 2009-10 and $313.51million in 2008-09 respectively.
"Pakistan is a cotton-growing country while now enjoying the new generalised system of preferences (GSP) on the EU market," Jahangir Alamin, President of Bangladesh Textile Mills Association, told the FE.
So, Bangladeshi-made home textiles are lagging behind Pakistan in terms of cost-competitiveness, he said about one of the major causes of setback.
Moreover, he added, the appreciation of taka against the dollar and recent political instability also cast a negative impact on the overall export growth in this sector.  
According to a recent study by Bangladesh Foreign Trade Institute (BFTI) Bangladesh is likely to face strong competitive pressure from Pakistan in home-textile trade.
Pakistan has used the new GSP scheme more effectively than Bangladesh did. Bangladesh's export to the EU market during the first five months of current calendar year grew by 11 per cent while Pakistan's by 27 per cent.
"Due to the EU's new GSP scheme, Pakistan will be the main competitor of Bangladesh on the EU market and our country may face pressure in the days to come," BFTI director Dr Mostafa Abid Khan said.
Home-textile products will be the main victim of the new system, he lamented.
Shaikh Hasan Zaman, director of Sad Musa Fabrics, said buyers were worried over timely supply on their orders due to the political turmoil for last two years. During the period, many of them have shifted a portion of their orders to other destinations, he added.
Besides, an inadequate supply of gas and power to industrial units severely hampers production. The fuel crunch forced many to generate energy by alternative means, resulting in a rise in the cost of production, he said.
The western consumers' buying capacity also fell in recent times due to economic recession over there. This resulted in a declining demand for such products, he observed.  
Monjurul Haque, marketing manager of Zaber and Zubair Fabrics, country's largest home-textile maker, said the export of home textiles during recent years increased in terms of value because the buyers paid higher due to the price hike of raw materials such as raw cotton and yarn.
Home-textile-export growth remained stagnant during the last two fiscal years, but quantity of export did not decline, he believed.
Now the prices of raw materials have fallen, so the rates of products, he said, adding: "Bangladesh is the leader on the EU market but yet to grab the US one."
Bangladesh exports home textiles such as bed-sheets, bedcovers, pillow covers, cushion covers, curtains, rugs, quilt, kitchen aprons, gloves, napkins and tablecloths to European Union countries, the USA, Canada, Mexico, Australia, Japan and Dubai.
According to BTMA, some 17 mills produce about 556.39 million metres of home textiles annually.

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