The government moves to fix the factors behind the failure in attaining export target and, in some cases, reduction of export of goods despite various incentives being given for a boost, officials said.
Export Promotion Bureau (EPB) authorities will sit with major exporters tomorrow (Thursday) to hear their views over the export fall, failure to attain the set target and the steps needed for a recovery from the slowdown.
Sources said the EPB board of management noticed that during the July-December period of fiscal year 2014-15 several sectors had failed to attain export target. Exports from some sectors have gone down from the previous year's mark.
The board in a recent meeting decided to identify the reasons through consultation with the exporters and trade experts and take steps to get over the problems.
Statistics show that for the July-December period the export target was set at US$15.604 billion. However, goods worth US$14.914 billion could be exported during the period--accounting for 4.42 per cent less than the target.
During the period, frozen fish export fell short of target by 10.47 per cent, vegetable export by 25.98 per cent, cut flower and foliage export by 68.30 per cent, fruits by 11.74 per cent, cement, salt and stone 2.13 per cent, ores, slag and ash by 50.06 per cent, petroleum by-products 65.14 per cent, rubber 19.79 per cent, leather 28.13 per cent, leather products 27.94 per cent, and wood and wood products by 36.17 per cent.
Besides, export of pulp fell headlong by 100 per cent from the target, paper and paper products fell 7.91 per cent, printed materials 23.64 per cent, silk 86.96 per cent, cotton 3.94 per cent, raw jute 5.41 per cent, specialised textiles 11.96 per cent, terry towel 38.57 per cent, copper wire 47 per cent, stainless steel ware 61 per cent, furniture 41 per cent, and computer services by 4.0 per cent.
Fourteen sectors get cash incentives against their export ranging between 5.0 per cent and 20 per cent. Those are garment, potato, halal meat and agro-products, elephant grass (hogla), paddy straw (khor) and sugarcane bark, bone dust and leather goods, pat bottle, finished jute goods, products of light engineering sector, frozen shrimp, jute yarn, ship export, and export-oriented domestic textiles.
The government hands out cash incentives to them to help boost their exports.  Â
When contacted, a senior EPB official cited price fall of export products globally, Euro's devaluation against the US dollar and political unrest as reasons for the export-target failure.
He said, "Sometimes incentives even cannot provide back-up when prices of goods fall to a great extent, which leads to an overall export slump."
However, a senior official at the ministry of commerce (MoC) told the FE that Bangladeshi exporters are only interested in the markets where they get duty-and quota- free access.
"Export to new markets could make hardly any mentionable progress in the recent years despite the fact that government has been paying special incentives for exporting to those destinations," he said.
He adds; "None of them is interested to take challenges of exploring new markets for exports."
Former president of Bangladesh Frozen Food Exporters Association Kazi Belayet Hossen told the FE Tuesday that export of frozen fish declined significantly because of price falls, particularly in Europe.
He said last year his sector could not attain target and would also fail in the outgoing fiscal.
Mr Hossen thinks that new markets need to be explored to raise export of frozen fish since European and American markets are squeezing due to erosion of their purchasing power.
"China, with a big-size population, can be a good market for Bangladesh's frozen fish," the leading exporter of frozen foods said.
A team of frozen-fish exporters will attend a fair in China this November to find market there, he added.
President of the Exporters Association of Bangladesh Abdus Salam Murshedy told the FE Tuesday during past few months the country went through political turmoil which has hampered production and caused image crisis for export-oriented industry.
He said the incidents in Tazreen Fashions and Rana Plaza had also pushed export-oriented sector into dire straits.
"The export target for outgoing fiscal year was very minimal. Despite that, the target won't be achieved due to losing our competitiveness on the global market," Mr Murshedy said, adding that the price fall of Euro against the greenback was also a reason.
He suggests the government should continue providing incentives and policy support alongside taking steps to raise capacity of local industry for raising export.
   syful-islam@outlook.com
Govt going to dig out reasons for export decline, target failure
Syful Islam | Published: June 17, 2015 00:00:00 | Updated: November 30, 2024 06:01:00
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