Exports rebound to grow 2.4pc Jul-Nov
Led by a vibrant knitwear sector, exports rose 2.4 percent in the first 5 months of the current fiscal (2007-08) on the same period a year earlier, clawing back a weak start to the year.
In the five months to November 30 total exports rose to US$5.166billion compared to $5.045billion a year earlier.
According to the EPB data, knit exports increased by 6.19 percent, while woven exports declined by 3.17 percent during the period this fiscal.
Data showed that export earning from knit reached US$2.03 billion in July-November period this fiscal. During the period in FY 2006-07, it was $1.915 billion.
The data also said woven exports declined to $1.847 billion during the period from $1.908 billion in the corresponding period of the last fiscal.
Behind the leap of the knit sector is the creation of a vibrant yarn and dyeing industry that provides 'backward linkage' as well as the introduction of innovative fashion and design.
These developments are especially attractive for international buyers as domestic production of yarn increases flexibility and greatly reduces lead times.
Sources in the research cell of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) said the backward linkage industries can supply up to 90 percent of the raw materials used in knitwear. This figures drop to around 25 percent in the case of woven goods, which necessitates import of most of the cloth, a process that can take weeks.
Talking to The Daily Star recently, former president of BGMEA Annisul Huq said the declining trend in woven export in 2007 is a consequence of political turmoil and labour unrest 12 months ago.
“The traditional fashions and designs are also responsible for declining exports of Bangladeshi products. Buyers want something new,” Huq said.
“But I am hopeful that in 2008 Bangladesh will do better in ready-made garment (RMG) export in the world market as everything looks good till now,” he added.