Home textile export earnings dropped by 7.98% to $518 million in the first five months (July-November) of the current fiscal year (FY2-22-23).
According to the Export Promotion Bureau (EPB) data, the earnings from this sector were $564 million in the same period of the last fiscal year (FY2021-22).
Moreover, the export target for this period in FY23 was $743 million.
Sector people said that the year-on-year export dropped from this sector due mainly to the gas crisis hampering production and the global economic and political crises.
The data also stated that the bed and kitchen toilet linen export earnings also dropped by 4.93% to $235 million in the July-November period of FY23, which was $246 million in the same period of the previous fiscal year.
Moreover, other home textile item export earnings were down by 10.36% to $284 million during the said period, which was $316 million in the same period of FY22.
In this regard, speaking to the media, Bangladesh Textile Mills Association (BTMA) President Mohammad Ali Khokon said consumers’ purchasing power had reduced due to the ongoing global crisis, causing orders from the US to drop slightly.
“However, our gas crisis has improved a little, and buyers are also placing new orders.”
Industry insiders said the sector had received huge export orders in the last fiscal year, thanks to uninterrupted production even during the Covid-19 pandemic.
But due to the Russia-Ukraine war, the global supply chain was disrupted, creating severe economic crises across the world when the crisis hit Bangladesh, the gas and electricity supply was disrupted, which cut textile mills’ production by up to 40%.
They also said that the energy crisis compelled them to reduce production and many of them failed to meet shipment deadlines due to slow production, which is why buyers are also placing fewer orders.
Bangladesh Terry Towel and Linen Manufacturers & Exporters Association Chairman M Shahadat Hossain Sohel told the media that Russia was their emerging market and export earnings from the country were gradually increasing.
“But due to the war, our exports have almost come to a halt, which is also a key reason for the negative export earnings in the sector,” he added.