Merchandise export earnings up 3.53% in September: EPB

Earnings from the merchandise export grew by 3.53 percent year-on-year in September to $3.01 billion on high shipment of garment items, according to the data released by Export Promotion Bureau (EPB) yesterday.

The September earnings are also 5.92 percent higher than the monthly target at $2.85 billion, the data said. Also in comparison in period, the export earnings returned to the positive territory in July to September, the first three months of the current fiscal year.

Between July and September, merchandise export grew by 2.58 percent year-on-year to $9.89 billion, the data also said.

The shipment of apparels, which typically contributes 84 percent in national export, grew by 0.85 percent year-on-year to $8.12 billion in July and September period, which is also 2.09 percent higher than the target at $7.96 billion.

Of the total earnings from the garment sector in July and September period, some $4.46 billion came from knitwear shipment, which is 7.04 percent higher than the earnings in the corresponding months of the last fiscal year.

However, the woven sector could not perform like the knitwear sector, as the earnings from the woven export declined by 5.78 percent year-on-year to $3.88 billion between July and September compared with the same period of the last fiscal year, the data also said.

Earnings from garment shipments has been increasing gradually because the international retailers have been taking back a significant quantity of work orders which were cancelled in April, May and June because of fallout from the coronavirus pandemic.

Earlier, international retailers and brands had cancelled garment work orders worth $3.18 billion, according to data from Bangladesh Garment Manufacturers and Exporters Association (BGMEA). With the reopening of stores in Europe, Canada and the USA,clothing retailers and brands have been taking back the cancelled work orders. As a result, earnings from the garment sector have been increasing, exporters said.

But, since the local spinners can supply raw materials quickly, the shipment of knitwear is higher than the woven products. Currently, some 60 percent raw materials of woven products are manufactured from imported fabrics, whereas the local spinners and weavers can supply 90 percent fabrics to the knitwear sector. This is a big lead time advantage for the knitwear sector, exporters said.

Shipment of home textiles grew by 40.74 percent year-on-year to $252.35 million, frozen and live fish like shrimp and crab export grew by 5.11 percent to $131.6 million an djute and jute goods increased by 39.26 percent to $307.55 million.

In July and September period, shipment of leather, leather goods and leather footwear decreased by 11.49 percent year-on-year to$225.15 million.