Photo: Messenger
The export data, released by the Export Promotion Bureau (EPB) on Sunday, reveals that the country's readymade garment (RMG) sector recorded its highest-ever export in January.
However, RMG exporters expressed astonishment upon discovering that the export figure was the largest ever. They are doubtful of the EPB data, mentioning that the sector did not export such a substantial volume of clothes in January.
According to the EPB data, the single-month apparel export earnings that indicate exports in January 2024 were $4.97 billion, an increase of 12.45 percent compared to January 2023.
Muhammad Hatem, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told The Daily Messenger, “This is an absurd figure. The sector is suffering from work orders being down by 40 percent. The factories are struggling for survival. We did not export such an amount of clothes.”
Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Shahidullah Azim said, “What an unrealistic data the EPB has published. We are waiting for Central Bank data; then we will comment on the export issue.”
The EPB has released the apparel export statistics for the period of July-January FY-2023-24. During the mentioned period, the country’s RMG export grew by 3.45 percent on a year-over-year basis to $28.36 billion from $27.41 billion during the same period of the fiscal year 2022-23.
The export of knitwear was $16.17 billion, with growth increasing by 8.15 percent, and woven garments were $12.18 billion, with growth declining by 2.20 percent.
During the seven months of 2024FY, Bangladesh earned $3.95 billion in July, $4.04 billion in August, $3.61 billion in September, $3.16 billion in October, $4.05 billion in November, $4.56 billion in December, and $4.97 billion in January.
Industry insiders think that the overall growth in RMG export is not up to the mark, but not bad either. However, the recent trend in trade reflects a depressing scenario for the retail business and the economy, which might continue throughout this year.
“For Bangladesh, the positive side is that we are gradually diversifying our products and moving toward sophisticated items, which is reflected in the growth. After 3 months, the growth has inclined, and this is the first time in a single month that our RMG exports have reached nearly $5 billion,” said Mohiuddin Rubel, Director of BGMEA.
The EPB reports a decline in garment exports to traditional markets. In July-December 2024 FY, garment exports to the USA decreased by 5.76 percent to $3.27 billion, the EU by 0.18 percent to $9.05 billion, the UK by 14.61 percent to $2.25 billion, and Canada by 2.71 percent to $606 million. However, non-traditional markets saw growth, with Bangladesh's apparel increasing by 14.12 percent to $3.64 billion.
Bangladesh predominantly exports cotton-based products such as T-shirts, sweaters, blouses, underwear, and denim. As the world's second-largest garment exporter after China, Bangladesh holds the title of the largest denim exporter to the USA and a major cotton exporter to the EU.
Messenger/Disha
