Knitwear export shines riding on local raw materials

At a time when overall RMG export earnings are witnessing negative growth amid the pandemic-ridden fiscal year, knitwear exports have shone riding on locally sourced raw materials and production of Covid-19 safety equipment.

According to the latest data of the Export Promotion Bureau (EPB), earnings from knitwear posted a 3.84 percent growth in the first seven months of FY2020-21.

Export earnings from knitwear were $9.99 billion in the July-January period of FY21, up from $9.62 billion during the same period of the previous fiscal year.

The overall RMG export earnings declined by 3.44 percent in the July-January period and major export items like woven garments declined around 11 percent.

Industry insiders said the production of knitwear is dependent on local raw materials, which was the key reason of growing exports despite the pandemic.

Also, due to the lockdown and Covid-19 health precautions, people are staying more at home which pushed up the demand of casual clothes — mainly knitwear.

Mohammad Hatem, vice president of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Business Insider Bangladesh that the pandemic is a silver lining for the knitwear industry.

“Covid-19 related products like PPE, masks, medical gowns; all are knitwear items and these items are in high demand. Also, people are more into casual clothes as they prefer staying at home due to the pandemic, which are also knitwear items,” he said.

“Another key reason for higher export is that the knitwear industry is 80 percent dependent on locally produced raw materials, whereas woven garments are 70 percent dependent on imported raw materials.

"We did not face a raw material shortage due to pandemic,” he added.