Value addition in Bangladesh’s ready-made garment sector fell to 57% in April-June FY24, the lowest in 21 months, primarily due to higher import costs of fabrics amid a domestic gas crisis, according to Bangladesh Bank. Net exports during this period reached $5.04 billion, a 14% decrease from the previous quarter. Total RMG export earnings declined 36% from the previous quarter and 1.38% year-over-year.
BKMEA President Mohammad Hatem raised doubts about the accuracy of Bangladesh Bank’s Q1 data, noting lower exports in Q2 were more realistic. Mr. Hatem anticipates further export declines due to political instability and falling orders from Europe, especially for winter and early summer products. He cited the gas shortage and reduced incentives as reasons for increased imports of raw materials.
Bangladesh Bank reported that RMG exports were supported by the devaluation of the Taka, but global demand weakened. Key export markets, including the US and Europe, generated $6.98 billion but showed declines compared to both the previous quarter and the previous year. Mr. Hatem criticized previous policies based on flawed data that led to incentive cuts, calling for government review and reliable energy supply for factories to sustain exports.
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