Inter-apparel diversification, reducing the lead time, raising efficiency, ensuring effective research and development, exploring new global markets, cultivating a skilled RMG workforce and modernising production should be prioritised to raise RMG exports, the July-September FY24 review recommended.
Some impediments for the sector are limited products and market, lack of sufficient backward linkage industry, concentrated market, high lead time and lack of efficiency in producing high-value products, the central bank noted.
Cotton price fluctuations, domestic political unrest, global geopolitical conflicts, energy price hike, the COVID-19 pandemic, the European Union-Vietnam Free Trade Agreement and the awaited graduation from the least developed country status in 2026 have changed the overall trade dynamics in the sector, it observed.
The country’s total RMG export earnings were worth $11.61 billion between July and September of FY24—13.07 per cent higher year on year (YoY), but 1.04 per cent lower quarter on quarter (QoQ).
Due to troublesome financial condition of the global economy, RMG exports in the first quarter of FY24 fell short by 1.49 per cent of the target set for the quarter, the BB data showed.
Woven garments accounted for 35.48 per cent of total export earnings, while knitwear contributed 49.41 per cent, domestic media outlets reported.
Export earnings from the knitwear sector during the quarter reached $6.76 billion—a rise of 2.45 per cent QoQ and 19.70 per cent YoY. Moreover, knitwear exports exceeded its target by 5.42 per cent for the quarter.
The first quarter of FY24 showed a declining trend in export earnings from woven garments, which stood at $4.85 billion—5.52 per cent lower QoQ and 4.97 per cent higher YoY.
However, exports of woven garments fell short by 9.74 per cent of the quarterly export target set by the country’s Export Promotion Bureau.
Value addition in the sector in Q1 FY24 rose to 70.78 per cent from 51.49 per cent in the same period of the last fiscal due to a rise in shipments of high value-added products and a surge in prices of apparel products in the global market.
RMG exports to nine main destinations—the United States, Germany, the United Kingdom, Spain, France, Italy, the Netherlands, Canada and Belgium—stood at $8.10 billion in Q1 FY24.
RMG export earnings from these nine countries fell by 2.68 per cent QoQ during the quarter and increased by 9.21 per cent YoY
ALCHEMPro News Desk (DS)
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