Apparel exports drop to 13-month low

As the Russia-Ukraine war prolongs, Bangladesh’s apparel shipment keeps on falling, fetching $3 billion in September, the lowest in the last 13 months.

The European inflation and price hike in the USA have freaked out the consumers, compelling them to buy less, exporters said.

The export receipts in August had aggregated $3.70 billion, statistics show.

Leaders of the apex body of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) unofficially admitted that the export earnings during September might be the lowest in the last 12 months.

“I told you earlier that export of apparel would be affected significantly after August. According to our daily data, exports of September stood at $3 billion,” Shahidullah Azim, vice president of BGMEA told Business Insider Bangladesh on Saturday.

He also predicted exports may continue to drop in the rest of the months this year.

“Work orders have fallen 35 to 40 percent. Some of the factories are cutting their cost. Some are minimising working hours.”

Another manufacturer said bleak days are ahead, too.

“As the work orders fell drastically, we are toiling hard to remain competitive. Due to the hike in the prices of various components of production, our expenses are also increased. And, some of our consignments are in the warehouses. Therefore, exports in September dropped,” Shupolo Dewan, Assistant General Manager (AGM) of Chittagong Denim Ltd., told Business Insider Bangladesh.

Dewan said consumers have lessened their shopping of fast fashion. In the ensuing Christmas, customers will buy less than average due to inflation.

He said fast fashion is the strength of Bangladesh’s shipment. As these products are cheaper, people used to buy these products even amid the pandemic, but inflation caused by the Russia-Ukraine war also keeps people away from buying cheap dresses.

BGMEA President Faruque Hassan told Business Insider Bangladesh, “We are searching for alternative markets to sustain in any adverse economic situation. I hope the crisis will be over before next year.”  

Bangladesh has set a target of $80 billion in export by 2024 and $100 billion by 2026.

Exports grew in the EU market by 13.36 percent and in the non-traditional market by 22.72 percent, respectively.