Export earnings fall by 18.29% in March: EPB data

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Export earnings in March declined by 18.29 percent year on year to $2.73 billion because of a fall in shipment of apparels, according to data from the Export Promotion Bureau (EPB).

This was, however, not a dirtect result of the current Covid-19 outbreak, a specialist said.

The wages for March 2019 were $3.34 billion, the EPB data also said.

This year's March receipts was also 28.61 percent lower than the monthly target of $3.82billion.

Furthermore, the entire earning fell by 6.24 percent year on year between July and March period (the first nine months of the current fiscal year) to $28.97 billion.

The earning from the nine months of current fiscal can be 14.52 percent lower than the periodic target of $33.89 billion, based on the EPB data.

The earning between July and March of the fiscal 2018-19 was $30.90 billion.

The receipts from garment shipment between July and March of the current fiscal year also declined by 7.12 percent year on year to $24.10 billion, which is 15.29 percent below of the periodic target at $28.45 billion.

Of the full total earning from garment items, $11.95 billion originated from knitwear shipment and $12.14 billion from woven garment export, registering year on year fall of 6.61 percent and 7.61 percent respectively through the nine months of the current fiscal year.

Export of frozen foods declined by 3.91 percent year to year to $402.6 million, agricultural products by 0.1 percent to $721.98 million, leather and leather goods by 10.78 percent to $688.51 million, terry towel by 29.12 percent to $30.04 million and home textile by 7.59 percent to $598.19 million, the EPB data said.

However, exports of some goods also increased between July and March of the existing fiscal year.

For example, jute and jute goods shipment increased by 23.49 percent to $775.63 million, carpets by 23.61 percent to $18.06 million, pharmaceuticals by 6.50 percent to $106.22 million and footwear by 25.17 percent to $242.07 million.

The real impact of coronavirus outbreak on export can't be realised based on March export receipts, Ahsan H Mansur, executive director of Policy Research Institute (PRI), told The Daily Star.

The March receipts were based on shipments made earlier, while coronavirus outbreak started affecting the production in the local industries right from the start of April, when most the production units had to turn off.

Mansur's observation is also reflected on the shipment of garment between April 1 and April 15.

For example, garment export drastically fell by 83.74 percent year on year to $194 million in the first 15 days of April weighed against the same period of this past year, according to data from Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Through the same period in 2019, the earning from garment shipment was $1.19 billion, the data also said.

Most western retailers and brands turn off their stores in the Europe and the united states because of coronavirus pandemic.

Many international retailers and brands have previously cancelled work orders from different local factories, worth a lot more than $3.11 billion around this week.

The worst-affected countries from coronavirus, such as for example Italy, the UK, the united states, France, Spain and Germany will be the prime destinations of Bangladesh's export of garment items.

Mansur, however, suggested to keep the export regardless if it is possible to export 20 percent if not full, as you will find a demand for Bangladeshi goods to international buyers.

"During this very long time we have to not sit idle. We need money and employment," Mansur said.

Many of the countries like Spain and China have already been checking their factories and markets, he said.

It will, however, have a lot of time to revive of normalcy worldwide, Mansur said.

The trade bodies have already been developing a guideline for checking the factories.

"We need to understand that the factories opening is quite dependent on the global situation instead of our domestic one. The demand will there be for Bangladeshi goods. We must think about it," Mansur also said.

However, Bangladesh should speed up the testing of coronavirus patients to learn the depth of the problem, which will help to have a more informed decision, Mansur said.

The government should form a consulting forum comprising experts, that will counsel in this regard. The original bureaucratic decision making may not work very well, he added.
Source: https://www.thedailystar.net

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