Apparel export increases by 21% in July-October

Export has bounced back to positive growth after the pandemic, riding on apparel shipments.

Export Promotion Bureau (EPB) data shows, Bangladesh exported $12,621 million worth of goods during July-October of 2021, up by 20.78 percent from the same month, a year ago.

Of the exports, $7,210 million came from knit garment and $5,411 million from woven garment in July-October which was $5,802 million (knitwear) and $4,648.22 million (woven garment), respectively, in the same time of 2020.

Export of the readymade garment has increased by 53.28 percent in October, year on year.

Apparels worth $3,561.71 million were shipped in October which was $ 2,323.72 million during the corresponding period of last year. In September, apparel exports had fetched $3,418.84 million.

The exporters said currently they are shipping more because the Christmas peak season is knocking on the door.

Exports from Bangladesh faced unexpected delays for a couple of months owing to the global container crisis. Recently, the crisis has largely been lessened which helped Bangladesh increase the export proceeds. Net export revenue of October could have been more had there been no additional freight charges, exporters said.

“Our export revenue has gone up because of the shipment momentum at the Chittagong port. We delivered the product by air too, consequently, the export has increased more. If we could avoid the high freight charge, we might have earned more export revenue,” “Shahidullah Azim, Vice President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told the Business Insider Bangladesh on Tuesday.

The crisis of containers, however, dragged the shipment behind.

Though the container crisis has waned notably, the shortage will continue until 2022 to ’23. Our export growth has rebounded after the withdrawal of lockdown, so we are trying to serve the customer as much as possible,” Md Ruhul Amin Sikder, Secretary, Bangladesh Inland Container Depots Association (BICDA) told Business Insider Bangladesh on Tuesday.

He said they are expecting the freight charges to get normal in 2023.

As the country is experiencing a positive growth in garment export since July-August, the charges spiraled, exporters said.

However, woven exports also recorded positive growth after nearly one and a half years with the reopening of the economies in the western world.

Earnings from home textile posted a positive growth of 16.52 percent and leather and leather goods over 28.85 percent, as per EPB.

“Those work orders, which were poured in the country after a long lockdown, started to ship back in the festival season of Christmas. And, on top of that, demand for apparel shot up, too. So, monthly production and export are going up,” said Proprietor of AAA TRIMS WORLD, Zainul Abedin.

The orders received earlier during lockdown have now been shipped. The export will increase more in November and December, Zainul said.