Bangladeshi home textiles exports growing weaker

The Bangladeshi home textile exports have declined due to political unrest and inadequate supply of gas in the dyeing factories. Hampering production and compelled them to spend more to generate energy by alternative means. It has seen a 6% decline in the first half of the current fiscal year. It also fell 9% short of the period’s target of $388.21m. The home textile export target was set at $831 for the whole fiscal.

In July-December period of the FY2013-14, home textiles fetched $350.20m, which is 6.30% lower compared to $375m for the same period of previous fiscal, EPB data showed.

According to Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) first vice president Mohammad Hatem told the Dhaka Tribune that Home textile sector bears the brunt of political unrest, which caused the down trend in exports.

Uninterrupted electricity and adequate gas supply is mostly needed in the dyeing units, but they lack it. Resultantly, production has been hampered as well as the export volume.

Home textiles saw the impact early before RMG sector as it takes less than two months to execute orders while apparel secretor needs over four months, he added.

Increase in the prices of cotton, yarn and other raw materials acted as a catalyst to the declining trend of exports, said a BGMEA director, wishing anonymity.

He said that political unrest cast negative impact on production, which is another reason for the down trend in export earnings.

Though the government claimed uninterrupted gas and electricity supply, but inadequate supply of gas and power to industrial units severely hampered production and compelled us to spend more to generate energy by alternative means, he noted.

Production cost has increased significantly over the last few years, which threw challenges before them as their competitors have opportunity to produce at lower cost, said Salam Murshedy, managing director of Envoy Textile.

Bangladesh’s export earnings rose 16.6% to US$14.68bn in the first half of the current fiscal year compared to $12.6bn in the July-December period of previous fiscal.

The two largest export earners, knitwear and woven garments posted 19.5% and 20% growth to over $5.9bn and nearly $6bn respectively.

Moreover, with the GSP facilities given to Pakistan by EU have created a challenge for Bangladesh as they are stronger than them in terms of design and availability of raw materials.