Dr Khondaker Golam Moazzem on political unrest and export fall

Published in Dhaka Tribune on Monday, 17 February 2014.

Apparel exports fall 1.6% in January

Tribune Report

The exports fell to $2.24bn in January from $2.28bn one month earlier

Bangladesh’s readymade garment exports have declined by 1.66% or $38m in January from December as, apparel makers said, production was disrupted by political unrest.

The exports fell to $2.24bn in January from $2.28bn one month earlier, Export Promotion Bureau (EPB) data.

“Political unrest has dented the RMG factory production, which reflects in the fall of exports,” said Abdus Salam Murshedy, president of Exporters Association of Bangladesh (EAB).

He feared the export might further fall in the coming month as “the sector continues to face order crisis from the buyers while many orders still remain pending.”

Dr Khondaker Golam Moazzem, additional research director of Centre for Policy Dialogue (CPD), identified workers’ unrest and shipment delay caused by political turmoil as reasons for the export fall.

However, the country’s total export earnings surged 15% to $17.44bn in the first seven months of the current fiscal year from $15.15bn in the same period one year ago.

The January 2014 exports also rose to $2.75bn with 7.81% up from $2.55bn in January 2013, according to EPB figures.

The volume exceeded the target of $2.67bn by 2.83% in the month.

RMG exports posted nearly 15% growth and stood at over $14.17bn in the July-January period of the current fiscal year from the same period of last year’s $12bn.

The knitwear and woven garments, the two largest export earners, registered 18.13% and 17.32% growth respectively in the period.

The knitwear export volume totalled nearly $7bn and woven garments more than $7bn.

The data showed frozen foods export increased 26%, shrimps 34%, vegetables 31.21%, footwear 32.21% and leather 45.38% in the period.

Jute and jute products export dropped 21.24%, specialised textiles 3% and ships, boats and floating structures 95%.