Thursday, August 20, 2015

The RMG exports achieved $25.49 billion in the FY15 with around 4 percent Growth

The RMG exports achieved $25.49 billion in the FY-15 with around 4 percent growth whereas last year growth rate was around 14 percent.

Even the total export earnings growth hit its 13-year low at 3.35 per cent year-on-year in the just concluded financial year 2014-15 as political turmoil in the country and decline in the ready made garment prices on the global market hurt the export business.



The country’s export earnings in the FY 2014-15 stood at $31.19 billion with a shortfall of $2 billion from the government-set target of $33.20 billion, according to the Export Promotion Bureau data which is released on 7th July.

Experts and exporters said the political turmoil, decreased value of products on the world market, deprecation of the euro and the impact of Rana Plaza building collapse were the reasons for the shortfall in the export target in the FY15.

According to EPB officials, the export earnings from the RMG products in the FY15 witnessed a shortfall of $1.4 billion from the government-set target of $26.89 billion.

The impact of the Rana Plaza building collapse and the slow growth in the US market were the other reasons for the sluggish export earnings growth, Mansur said.

Abdus Salam Murshedy, president of the Exporters Association of Bangladesh, said the export earnings registered a minimal growth in the FY15 as the RMG sector had been going through a transformation since the Rana Plaza building collapse. The Rana Plaza building collapse at Savar, on the outskirts of Dhaka, on April 24, 2013 killed more than 1,100 people, mostly garment workers.

‘At the same time, exporters faced political turmoil in the last two years that hit hard the export business,’ Salam said. Salam, also a former president of Bangladesh Garment Manufacturers and Exporters Association, hoped that despite challenges exporters would overcome the shortfall in the next fiscal year as the political stability was restored in the country. EPB vice-chairman Shubhashish Bose told reporters that the export earnings in the FY15 registered a minimal growth due to price fall of apparel products as the prices of raw materials including cotton and yarn decreased on the international market. According to the EPB vice-chairman, the earnings from knitwear grew by 3.13 per cent while that from woven increased by around 5 per cent.

No comments:

Post a Comment