Bangladesh earlier recorded a single-month highest export earnings in October last year
Bangladesh recorded its highest ever single-month export earnings amounting to $4.91 billion in December last year, data showed Sunday, thanks to a strong rebound in demand for apparel in western markets even amid the Omicron spread.
The export receipts surpassed the $3.91 billion target set for the month, registering more than 48% year-on-year growth, according to provisional data of the Export Promotion Bureau (EPB).
Apparel shipment in December grew by 52.6% to $3.16 billion year-on-year, raising the total export earnings to $24.69 billion in the first half of fiscal 2021-22.
Apart from apparel, frozen food, agriculture, manufactured items, plastic products, leather and leather goods, and jute and jute-made items also posted impressive year-on-year growth in December.
But pharmaceuticals lost out as it posted over 9.8% negative growth in December.
Earlier in October last year, Bangladesh recorded its highest ever single-month export earnings amounting to $4.73 billion.
Apparel-makers are hopeful the export growth will continue in the next couple of months as western clothing stores sprint to fill up their inventory. Plus, raw materials for clothing are spiraling in the international market, resulting in inflated garment export earnings.
Apparel might
The latest export data show December 2021 ended with $4.04 billion of readymade garment export, while the half-yearly apparel export in the July-December period of the current fiscal year reached $19.90 billion registering a 28.02% year-on-year growth.
Garment export breakdown shows knitwear exports saw 56.57% growth in December, whereas woven garment export increased by 48.17%, marking a positive turn in all key clothing export categories.
Abdullah Hil Rakib, director at the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), said most of the fabric stores in the western market did not buy products in almost two seasons due to Covid. After the reopening as the virus situation normalized, they are now rushing to fill up their empty selves that have been reflected on the apparel export earnings since September last year.
“Most of the western countries now want to continue both life and livelihood at the same time. So, they are opening the stores even amid the Omicron spread,” he commented.
The upswing may continue
Fazlee Shamim Ehsan, vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said December shipment included consignments for the summer leading to the startling single month growth. Besides, pricier raw materials are also reflected in the export earnings.
“The supercharged demand is likely to continue in the next couple of months,” he added.
BKMEA Executive President Mohammad Hatem also said December growth was natural considering the global market scenario.
BGMEA President Faruque Hassan expressed hope that apparel export would be able to add another $7-8 billion by the end of this fiscal year in June 2022, while Bangladesh earned $31.46 billion from the sector in fiscal 2019-20.
“We have been able to capture a chunk of western orders centering the Christmas, leading to the highest single-month exports. Entrepreneurs’ efforts as well as various government incentives have played a role in achieving this,” said AHM Ahsan, vice-chairman of the Export Promotion Bureau.
Despite the annual export target of $43.5 billion in the current financial year, we expect it to reach $46 billion, he added.
However, BGMEA Director Mohiuddin Rubel said though export data looks promising so far, there have been mounting challenges too.
“On one hand, prices of the raw materials and freight costs are at their peak. On the other, western buyers also did not raise their purchasing rates to the extent of the cost escalation,” he added.
