Knitwear exports in the 2007-08 fiscal year are likely to exceed the government's target due to a strong performance in the US market and the increasing flexibility given by the use of local yarn.

In the six months to the end of December 2007, local knit manufacturers exported $2.550 billion according to the Export Promotion Bureau (EPB), just short of the government's target.

However industry sources said strong order intake mean the annual target of US$5.465 billion should be reached.

President of BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) Fazlul Hoque said if the current rate of knit export continues the target will be exceeded this year.

“On an average at present 15 new knit factories are coming into operation every month in Bangladesh which shows that the sector is growing,” he said.

Behind the success has been the increased backward integration of the industry, with local yarn now accounting for around 90 per cent of the yarn used in Bangladeshi knitwear production. This allows local knit exporters to reduce lead-time significantly, exporters said.

Late last year knitwear exports for the first time overtook woven items as the country's single largest export item and it seems this trend is set to continue.

In 2006-07 Bangladesh exported knit items worth $4.55 billion against its target of $4.88 billion, with the industry hit by continuous labour and political unrest, and bad weather conditions in the EU.

Previously, in 2005-06 and 2004-05 fiscals the knit export exceeded the target.

BKMEA officials said although the government increased the export target at by 20 percent for the knit sector in 2007-08 the exporters are confident of hitting the target.

Another plus for the knitwear sector has been the expansion of sales to the US. This has come despite economic weakness in the sector's second largest market after the EU.

Import data from the United States International Trade and Commerce (USITC) showed that in 2007 calendar year Bangladesh exported knit items worth $815 million, up 11.2 percent on the $733 million in 2006 calendar.

Bangladesh was positioned at 14th in knit export to the US in 2007.

President of BKMEA (Bangladesh Knitwear Manufacturers and Exporters Association) Fazlul Hoque said if the current rate of knit export continues the target will be exceeded this year.

“On an average at present 15 new knit factories are coming into operation every month in Bangladesh which shows that the sector is growing up to hold the world export market,” he said.