Exports fall further on EU debt crisis
Exports fell by 4.60 percent to $1.90 billion in April compared to a month ago due to the ongoing debt crisis in the EU and readjustment of prices of finished goods by international buyers.
The debt crisis has also dampened the demand for Bangladesh's main export earner readymade garments in the Eurozone.
This is one of the major causes that are pushing down the growth of exports from Bangladesh, exporters said.
Also, international buyers have readjusted the prices of finished goods in line with a fall in the prices of raw materials globally.
Last year, the buyers paid higher prices for finished goods as the prices of raw materials were higher then.
But this year, the prices of raw materials declined and so the buyers have revised the prices of finished goods downwards, the exporters said.
However, exports fell short of the monthly target by 14.23 percent in April, while such a deficit was at 15.38 percent in March, according to data released by state-owned Export Promotion Bureau (EPB) yesterday.
The monthly export target for April was at $2.20 billion.
Earnings fell by 7.13 percent in April, compared to the same month a year ago.
Earnings from exports were recorded at $2.03 billion in April last year.
This is the second straight month that the monthly earnings marked a decline in the current fiscal year.
However, exports in the July-April period of the current fiscal year registered an 8.41 percent rise to reach $19.77 billion compared to the same period last year, EPB data shows.
In the periodic (July-April) comparison also, the export earnings fell short of the target by 6.99 percent. The target for the period was at $2.13 billion.
Bangladesh's knitwear exports rose by 2.99 percent to $7.70 billion and woven by 16.90 percent to $7.83 billion in July-April this year compared to the same period a year ago.
Such rises are lower compared to the growth in July-March when knitwear exports increased by 5.92 percent to $7 billion and woven by 19.24 percent to $7.10 billion.
“The decline is absolutely due to the global financial turmoil,” said Shafiul Islam Mohiuddin, president of Bangladesh Garment Manufacturers and Exporters Association, a platform of the garment makers and exporters.
“If the EU debt crisis prolongs further, the exports will be affected much,” he said. The 27 countries in the EU bloc are the largest market, while the US is the single largest export destination for Bangladesh.
AKM Salim Osman, president of Bangladesh Knitwear Manufacturers and Exporters Association, said the prices of per unit of knit product declined to an extent because of the fall in the prices of raw materials globally.
As a result, the accumulated value of knitwear products is showing a declining trend, he said, adding that the prices of yarn and cotton came down this year.
“Moreover, the knitters are taking limited orders due to power crisis in the industrial units,” he said.
The commerce ministry set the export target for the current fiscal year at $26.50 billion, which is 14.50 percent higher than the amount earned in fiscal 2010-11.