Exports make strong rebound

Export earnings rebounded strongly in the just-concluded fiscal year, fetching $38.75 billion, buoyed by a revival in the shipment of garment items, official figures showed yesterday.

The receipts in fiscal 2020-21 are 15 per cent higher compared to a year ago, according to data from the Export Promotion Bureau (EPB).

Month-wise, overseas shipment also recorded significant growth.

In June, the takings from merchandise exports surged 31.7 per cent to $3.57 billion, which was $2.71 billion in the same month a year ago. Despite the turnaround, the overall receipts could not reach the pre-Covid level of $40.5 billion logged in the fiscal year 2018-19, the highest on record.

The shipment also fell 5.47 per cent shy of the $41 billion target set by the government for FY21.

Exporters, however, hope that the uptick in the shipment would likely continue as the demand for the leading export item apparel has risen in the major markets in the west.

Garment shipment, which accounts for about 85 per cent of the national export, registered 12.5 per cent year-on-year growth, fetching $31.45 billion in the last fiscal year.

Knitwear emerged as a major driver as earnings rose 22 per cent to nearly $17 billion in FY21.

Woven export, which had been stuck in the negative territory in the last one and a half years, registered 3.24 per cent growth to $14.49 billion.

Home textile posted spectacular growth.

For the first time, the shipment of home textile crossed the $1-billion mark. The export from the segment soared 49 per cent to $1.13 billion in FY21.

Exporters say the demand for both knitwear and home textile items has gone up globally as people are spending more time indoors because of the lingering coronavirus pandemic.

Md Shahidullah Chowdhury, executive director of Noman Group, the biggest home textile producer and exporter in Bangladesh, said the shipment of bed sheets, curtains and towels helped his company boost the export growth by 10 per cent.

Work orders from China shifted to Bangladesh to some extent, he said.

"The export trend looks bright as international retailers and brands are coming back with a handful of work orders for the next season," said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association.

He said the export earnings should be compared with the pre-crisis period.

In fiscal 2018-19, Bangladesh exported garment items worth $34.13 billion. It dropped to $27.94 billion in the following year as the sales collapsed in the western markets because of the pandemic.

"With the reopening of the clothing stores in Europe and the US, the shipment of garment items is rising," Hassan said.

According to the business leader, the export of knitwear had already returned to the pre-pandemic level, and woven export was rebounding.

The price of garment items made in Bangladesh also increased to a bit as buyers are taking into account the high cost of raw materials like fabrics and yarn. But the cutting and making charges have almost remained unchanged.

Hassan thanked the workers, owners and the government for keeping open the garment factories during the lockdown.

The export of jute and jute goods clocked 31.6 per cent growth to reach $1.16 billion in FY21. Leather and leather goods brought home $942 million, up 18 per cent year-on-year, EPB data showed.

Md Saiful Islam, president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh, said the increase in the proceeds from leather and leather goods shipment was driven by the sales of previously unsold goods and the reopening of Europe and the US.

"The western customers are going out and spending thanks to the mass vaccination. So, I hope the positive trend in the shipment of leather and leather goods will continue."

Frozen foods, agricultural products, pharmaceuticals, ceramics, footwear, and carpets also fared well.