Home Apparel Sweater exports fall on weaker euro, shorter winter in Europe

Sweater exports fall on weaker euro, shorter winter in Europe

A shorter winter in Europe coupled with the devaluation of the euro led sweater exports from Bangladesh to drop 3.54 percent last fiscal year, although exports of other apparel items rose.Bangladesh exported sweaters worth $2.82 billion in fiscal 2014-15 compared to $2.93 billion in the previous year, according to Export Promotion Bureau.Sweater exports have been fluctuating for the last few years for shorter winters in the West, especially Europe, exporters said.Besides, customers are reducing orders because of the falling euro,” said Rubana Huq, managing director of Mohammadi Group.“On top of that, many factories have brought in automated machines that have led to overcapacity.”Sweater makers are installing automated machines for higher productivity and to maintain quality.“Most of us suffered amid fierce competition, increased productivity, failing euro and short winters,” Rubana added.Exports of other garment items like shirts increased to $2.28 billion from $2.18 billion, while trouser exports remained almost the same at $5.7 billion in both years.Jacket exports went up to $3.19 billion in 2014-15 from $2.98 billion in the previous year and T-shirt exports rose to $6.07 billion from $5.87 billion, EPB data showed.The effects of climate change can be observed in Europe, and further changes in climate are projected to take place in the future, according to the Climate Change Challenge for European Regions, a study conducted by the European Commission.“Warming has been stronger in most regions in winter than in summer. An increase in warm extremes has been observed rather than a decrease in cold extremes,” the study added.“Warmer conditions generally will reduce the length of winter. Seasonal snow accumulation could increase in higher elevation zones, especially above the freezing level, where there would be little summer melt,” said another study conducted by Intergovernmental Panel on Climate Change, the leading international body for the assessment of climate change.On other hand, the euro has started falling against the taka since September last year. The euro had been at Tk 100 in September last year, but has now declined to Tk 86-Tk 87.Bangladeshi entrepreneurs are also changing their sweater production pattern to match climate change in the West, said Faruque Hassan, senior vice-president of Bangladesh Garment Manufacturers and Exporters Association.With climate change, the demand for thick sweaters, widely produced in Bangladesh, is going down in Europe, he added.“As a result, customers like light sweaters, which can be worn all year round. But Bangladesh is still not a strong producer of light sweaters, although investors are importing expensive machinery to produce such sweaters,” Hassan said.