DHAKA: Bangladesh’s exports increased by 15% to US$38.76 billion in the fiscal year ending in June, according to figures released on Tuesday, boosted by a comeback in garment demand as Western economies rebounded. After China, the world’s second-largest garment producer lost over $6 billion in the 2019-20 fiscal year, with international apparel sales dropping 18% to US$27.94 billion.
Garment exports increased 13% to $31.5 billion in 2020/21 from the previous year, thanks to a 21% increase in overseas sales of knitwear products like t-shirts and sweaters, but were still 7% lower than the pre-pandemic period of the 2018-19 fiscal year, according to the Export Promotion Bureau.
Weaved clothes, such as formal denim shirts and pants, saw only a 3% increase in sales, which exporters blamed on sluggish demand as more individuals worked from home and avoided social engagements.
Bangladesh’s exports increased by 31% year on year to US$3.58 billion in June, owing to increased orders from the United States and Europe, the two primary destinations for apparel sales.
Leaders in the garment sector expect exports to rise, but rising freight and raw material prices could stifle expansion.
“The order flow is good. However, when freight costs and cotton prices rise, our exports may be hampered “Bangladesh Garments Exporters and Manufacturers Association vice president Shahidullah Azim remarked. “Our clothing factories are mainly unaffected by the latest pandemic scenario at home,” Azim, who serves European and North American merchants, explained. Bangladesh is currently dealing with a record-high number of coronavirus cases, causing the authorities to prolong the country’s most stringent curfew until July 14. Garment factories, on the other hand, are allowed to operate as long as they follow health regulations. Some garment workers are content because they can receive overtime pay, which can account for up to 20% of their monthly pay.
“I’m overjoyed that I’ll be able to make some extra money by working overtime. We used to go to the plant and sit around all day since there were no orders “Munna Khan, a worker in Gazipur, a town on the outskirts of Dhaka, agreed. Bangladesh’s garment sector has grown thanks to low wages, with 4,000 factories employing 4 million people supplying brands like H&M and GAP. The economy is based on readymade clothes, which account for over 16 percent of the country’s GDP. (Ruma Paul contributed reporting; Sanjeev Miglani and Jacqueline Wong edited the piece.)/n
