Apparel accessories and package makers failed to meet the export target of the first half of current financial year, hit by slower growth in the shipment of readymade garments, industry leaders said.
Bangladesh brought in $6.06 billion from exports of knit products during July-December of 2015 financial year, showing a 1.90 per cent growth.Earnings from woven products stood at $5.96 billion during the same period, registering a 0.35 per cent negative growth.
However, export of both the items failed to achieve their respective target by 2.41 per cent and 7.27 per cent respectively.
From July through December, "Our exports were US$ 2.25 billion, although the target was US$ 3.0 billion," president Bangladesh Garment Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) Rafez Alam Chowdhury told the FE.
The export target of apparel accessories and packaging product of this fiscal year is US$6.0 billion.
He said export of readymade garments has slowed as exporters are not getting adequate orders, compared with the previous years, while some orders were cancelled by the buyers.
The backward linkage industry makes around 35 items including button, carton, package, elastic, drawstring, embroidery, interlining, label, padding, poly bag, sewing thread, zipper, plastic items, back board, neck board, gum tap, bar code and so on.
The country's apparel accessories and packaging manufacturers directly export only 15 per cent of the products and the rest 85 per cent are sold to mostly exporters of garment, frozen foods, and pharmaceuticals.
BGAPMEA second vice president Abdul Kader Khan said Rana Plaza incident has negatively impacted the industry's export performance, which resulted in the missed shipment target of last fiscal.
"We earned US$ 4.75 billion whereas the target was US$5.0 billion," he said.
He said the RGM sector faced crisis last year for a number of factors including political instability and compliance as per the requirement of buyers to regain the image of Bangladesh.
Mr Chowdhury said local apparel accessories and packing makers are expecting the number of export orders to increase.
He said if the recent political situation continues then it will be tough to reach the target of export this fiscal year.
He also expressed concern over success of the three expos such as international Garments Accessories and Packaging Expo 2015, 14th Garmentech and 6th yarn and fabric sourcing fair that will begin today (Wednesday) at Bangabandhu International Conference Centre.
Around 30 countries including India, Pakistan, China, Taiwan, Australia, Germany and Dubai will take part in the fair.
There will be 632 stalls in the fair. The fair will remain open from 11 am to 8 pm every day. The visitors will enjoy these fair through registered their names at the venue.
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