Export plunges by 61.57pc in May

Image: Bizbangladesh.net
The country’s export earnings in-may this season declined by 61.57 % to $1.46 billion from $3.81 billion in the same month of this past year as the coronavirus pandemic hit the sales of manufacturing goods and the global buyers cancelled or suspended import orders.

Bangladesh’s single-month export earnings in-may, 2020 fell by 64.34 per cent compared with its strategic target of $4.11 billion set by the federal government, in line with the Export Promotion Bureau data released on Monday.

Exporters said that the negative growth of export earnings in-may was expected as the country’s business was sinking due to the pandemic and many other issues.

They thought that the export earnings growth would not maintain positivity in the coming months as the inserting of new orders by the global buyers was almost nil.

The country’s export earnings in the July-May amount of the existing financial year 2019-20 fell by 17.99 per cent to $30.96 billion from $37.75 billion in the same period of the last fiscal year, the EPB data showed.

The wages in July-May of FY20 fell 25.5 per cent short of $41.55 billion target set by the government for the period.

Citing a McKinsey report, Bangladesh Garment Manufacturers and Exporters Association president Rubana Huq said that COVID 19 would wipe off $297 billion from the global apparel value in 2020 while the global sales earnings would dip up to 27-30 % because of the pandemic.

She demanded policy support from the federal government to fight with the coronavirus fallout.

Support is required to establish a virtual market location to retain earnings from the readymade garment products in the changed global situation, Rubana said.

She demanded an exchange rate premium of Tk 5 a dollar on the neighborhood value retention, special treatment for export to markets having high tariff.

The BGMEA president also demanded support in research and development and trial production for services for the merchandise diversification.

The export earnings from readymade garments in the 11 months of FY20 fell by 18.99 % to $25.70 billion from $31.73 billion in the same amount of FY19.

The wages from RMG fell 26.31 per cent short of the mark set for the time.

The earnings from woven garments fell by 19.22 per cent to $12.96 billion in the time as the earnings from knitwear exports dropped by 18.74 % to $12.74 billion, the EPB data showed.

Mohammad Hatem, senior vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association, said that the export data showed the quantity that the country’s apparel makers shipped in-may after deducting the number cancelled by the buyers and the problem would not change in June.

‘I see no hope in the coming 3-4 months as the placement of orders has remained almost halted because of pandemic. I believe the demand for apparel won't increase soon on the global market,’ he said.

The export earnings from leather and leather goods in July-May of FY20 fell by 21.66 per cent to $739.39 million from $943.83 million in the same period of FY19.

The wages from leather footwear decreased by 21.62 % to $436.88 million in the time.

The EPB data showed that the export earnings from your home textile stood at $670.97 million in July-May of FY20, down 16.22 % from $800.85 million in the same amount of FY19.

Jute and jute goods exports, however, increased by 5.74 % to $817.97 million in the 11 months of FY20 from $773.57 million in the same amount of FY19.

Agricultural products including vegetables, fruits and spices in July-May period fetched $780.16 million with an 8.7-per cent negative growth.

Frozen and live fish exports in the time decreased by 9.98 % to $426.69 million, the info showed.
Source: https://www.newagebd.net

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