Exports tumble

Exports receipts last month came crashing down after logging in a record in July on the back of lower shipments of garment items. 

In August, exports raked $2.84 billion, down from $3.89 billion in July, according to the Export Promotion Bureau.

The inflows last month are 11.53 percent lower than a year earlier and missed the target for August by 26.42 percent.

Garment, which typically accounts for more than 80 percent of export earnings, brought home $2.41 billion, down 11.72 percent year-on-year.

The tumble in export earnings in August means the country is already lagging behind in its chase to hit $45.50 billion in receipts this fiscal year.

August’s earnings take the receipts in the first two months of fiscal 2019-20 to $6.73 billion -- $952.83 million lower than the target for the period.

Exporters blamed slide in shipments of apparel items on the production disruption brought about by the two Eid festivals.

Most of the factories remained closed for at least seven days for each Eid and another seven days of full production capacity could not be utilised as all workers did not return to factories on time, said Asif Ibrahim, director of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Ibrahim, who is also the vice-chairman of Newage Group, a leading garment exporter, however, is hopeful that order quantities will pick up, particularly in the knit sector and for a knock-on effect of the US-China trade war.

Bangladesh has started enjoying the benefits from the ongoing US-China trade war as the American retailers are diverting bigger volumes of work orders from China, exporters said.

Leather and leather goods exports are performing well again after two years.

Earnings from shipments of leather and leather goods increased 1.32 percent year-on-year to $185.41 million in the first two months of the fiscal year.

Export of handicrafts increased 12 percent year-on-year to $3.36 million.

Frozen and live fish exports declined 5 percent to $82.85 million, agricultural products 24.36 percent to $134.4 million jute and jute goods 0.43 percent to $130.57 million.

Also, terry towel, furniture and home textile performed poorly in the first two months of the year.  Some sectors like plastic goods, pharmaceuticals, footwear and bicycle performed well in the first two months of the current fiscal year.