Refayet Ullah Mirdha

Despite the persisting volatility in the global economy and higher  consumer prices in the western markets, Bangladesh’s merchandise shipment grew 5.89 per cent year-on-year to $5.13 billion in January, official data showed yesterday.

The ongoing dollar shortage in the banking sector is posing a threat to local textile millers and spinners as they are in trouble in opening letters of credit (LCs) to import raw materials and cotton to feed the country’s readymade garment industry. 

The commerce ministry has asked Bangladesh Bank to take all necessary measures to ensure smooth import of six essentials ahead of the coming Ramadan.

Bangladesh is poised to become the source of most of the European Union’s (EU) apparel as China, the largest apparel supplier worldwide, is witnessing a decrease in its share of trade with the bloc. 

Even a year ago before the start of the Russia-Ukraine war, Rajiv Chowdhury, managing director of Young4ever Textiles, used to ship T-shirts and polo shirts worth $1 million to Russia as the market was opening up for local exporters. 

Bangladesh plans to pay a maximum of 4 per cent in the interest rate and commissions against the loans to be guaranteed by the Multilateral Investment Guarantee Agency (MIGA), said officials of the commerce ministry yesterday.

Apparel shipments to the European Union (EU) grew 41.76 per cent year-on-year to hit $19.40 billion in the January-October period of 2022, according to data from Eurostat, the statistics department of the EU.

Amidst the slowdown in garment shipment to the European Union and the United States owing to persistently higher inflation, the Asian markets are emerging as the saviour for the apparel exporters from Bangladesh.  

Spinners in Bangladesh are facing a shortage of waste cotton and textile scraps since a major portion of them is shipped abroad amid higher demand for recycled yarns and fabrics worldwide. 

The growth of garment shipment to the US and the European Union declined in July-December as consumers in the two largest export destinations of Bangladesh have remained concerned about the persisting economic uncertainty for the raging Russia-Ukraine war.  

The flow of fresh investments in the garment accessories segment slowed in the last two years mainly for the severe fallout of Covid-19, the Russia-Ukraine war, and the US dollar crisis. 

Apparel exporters have demanded that the government fast narrow down the gap between the rates at which the US dollar is bought and sold, citing that they were incurring losses for volatility in the exchange rate. 

The commerce ministry today requested the Bangladesh Bank for keeping a certain quota of US dollar to facilitate import of six essential commodities to ensure smooth supply of the goods during Ramadan.

Only two major exports, namely apparel and leather and leather goods, performed well in the first half of the current fiscal year as global demand for non-garment items has fallen in the face of high inflation stemming from the Russia-Ukraine war.

Exports fetched a record $5.37 billion in December as consumer spending centring on Christmas in the Western world returned in full swing after two pandemic holiday seasons marked by health fears and supply shortages.

The earning from merchandise export in December grew by 9.33 per cent year-on-year to $5.37 billion, a single month historic high of Bangladesh.

The commerce ministry will again write to the finance ministry to provide a 10 per cent cash incentive to garment exporters making goods out of man-made fibres to offset the pandemic’s fallouts and challenges of Bangladesh’s country status graduation.

Anwar Landmark, one of the leading real estate developers, wants to expand its business, saying demand was rising rapidly for affordable flats and buildings among consumers like corporate executives, professionals like doctors and engineers and high-ranking government officials. 

Local apparel suppliers are expecting moderate recovery in exports in the upcoming year as sales in the Western world are gradually gaining pace with a new normal arising from the Russia-Ukraine war and falling prices of petroleum products.

Bangladesh has again proposed that the Indian government refrain from retaining an anti-dumping duty imposed on the country’s jute and jute goods once it ceases to have effect on December 31.