Thursday 15 August 2013

Global Recession Eats Into Home Textile Exports

The country’s export earnings from home textile declined to US$791m in the last fiscal year, a 12.64% fall compared to the previous year’s (2011-12) value of $906m due to global economic slowdown.



Export Promotion Bureau data showed Bangladesh fetched $791.52m in the last fiscal year, which was 12.64% down from the previous year’s value. While the sector earned $68.15m, down by 16.76% compared to July 2012 of $81.87m.



Meanwhile, the exports grew 24% to $3bn in July as compared to $2.4bn of the same month previous fiscal (2011-12), according to EPB data. The government had set an export target of $30.5bn for the current financial year.



Though home textile marked decline in last month, the export of knitwear garments grew by over 25% to $1.25bn and woven garments by 27% to $1.26bn. Both the items also witnessed rise in exports in the last fiscal year with nearly 15% for woven totaling more than $11bn and 10% for knitwear amounting to $10.5bn.



According to Bangladesh Textile Mills Association, 40% industrial value addition comes from textile sector and the sector provide over 500,000 jobs, of them 80% are female.



“In the winter season, uses of home textile rises and it is a seasonal product. That’s why export earnings from home textiles saw a decline,” said Shahidullah Azim, vice president of the Federation of Bangladesh Chamber of Commerce and Industry (FBCCI). He said export of home textiles would rise in September.



“Perhaps, appreciation of Bangladeshi Taka against dollar and depreciation of Indian rupee against dollar cast an impact on home textiles export as the buyers are more interested to buy Indian home textile products taking the opportunity of devaluation of Indian Rupee,” said Dr Khondaker Golam Moazzem, an additional research director of Centre for Policy Dialogue (CPD).



He said the country’s readymade garments sector, however, witnessed less impact of depreciation of Indian Rupee, because the sector are more advanced than that of India due to bulk buy orders.



“Home textile exports declined as the demands of home textile fell in European Union countries.



The consumers of those countries might have cut uses of clothes due to economic recession,” said Md Monsoor Ahmed, secretary of Bangladesh Textile Mills Association (BTMA).



The buyers’ countries will come out of recession within two or three years and the demands of home textile will increase again, he added.



“We cannot reach the potential market of home textile due to lack of proper projection of our products, which may cause down trend in export of textile products,” said Shubhashish Bose, vice chairman of EPB.



If the textile exporters and producers take part in world exposition to display their products to world buyers, it would help knowing about fashion and trend of consumers, he added. Bose said if our products can ensure international standards, it will pave the way to grab the international market.



He also stressed on more participation in international expo in order to display our products as this sector des not participate in different trade shows in a large scale.


Source:- dhakatribune.com





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