RMG exports may grow 15pc in FY12

http://www.theindependentbd.com/business/others/88030-rmg-exports-may-grow-15pc-in-fy12.html

RMG exports may grow 15pc in FY12
Author / Source : Staff Reporter

Dhaka, Jan 3: Readymade garment (RMG) exports are likely to grow by around 15 per cent this fiscal year (FY), compared to the volume a year earlier, experts say.
Export Promotion Bureau data on July-November exports show that the country’s overall exports have grown by 18 per cent year-on-year against the 40 per cent growth a year ago. In July 2011, exports rose by 28.7 per cent, followed by a rise by 32.4 per cent in August. However, the growth rate declined to 2.29 per cent in September, 15.44 per cent in October and 2.4 per cent in November.

Shubhashish Bose, vice chairman of EPB, told fibre2fashion website, “Bangladesh’s export target for FY 2011-12 is $26.5 billion, and from July to November 2011 we exported $9 billion worth RMG. We hope we will be able to achieve our targets.”

RMG sector constitutes about 70-80 per cent of Bangladesh’s total exports, he added.

Mustafizur Rahman, executive director of Centre for Policy Dialogue (CPD), told fibre2fashion, “The exceptional growth rate of 40 per cent was registered because of rising global demands.

But, such high rate cannot be expected every year.

Considering this, 18 per cent growth is remarkable.”

Rahman also said prices of raw materials, i.e. cotton and yarn, have come down by 50-60 per cent compared to the last year, which resulted in lower price level and margin.

In light of these factors, the growth rate can be termed “significant”. “The demand in the US and Europe market was lower. But there were some shifting orders from China and India has also offered zero tariff access. All these factors favoured exports,” he told the website.

Rahman said that it is uncertain how the Eurozone crisis will develop and whether it will degenerate in recession, but predicted an overall growth. “I foresee a double digit growth rate with the overall growth at around 14-15 percent this fiscal,” he said.

Bose said Bangladesh mainly exports basic apparels, which are not high-value but basic necessities.

“Even if there is recession in Europe or the US, people will buy these apparels. Bangladesh can look forward to a double digit growth and achieving the export target,” he said.

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