Bangladesh's apparel exports have shown a positive growth rate during the initial eight months of the current fiscal which started on July 1, 2011. However, the growth momentum has slowed down due to financial crunch in EU, the country's main apparel export destination.
The earnings from knitwear item exports growing at a year-on-year rate of 8.73 percent touched US$ 6.29 billion during July-February period, far below 43.93 percent growth achieved during the corresponding period of last fiscal.
Similarly, woven garment exports rose by 22.20 percent to US$ 6.26 billion during the period, compared to growth rate of 37.95 percent registered during the same period of previous fiscal.
According to an expert, though Bangladeshi apparel exporters have been able to retain positive growth momentum, financial crunch in the EU is restraining exporters from getting good price for their products.
He added that an atmosphere of uncertainty exists on whether the country's garment sector would be able to achieve its 2011-12 export target of US$ 20.3 billion, with producers being badly hit by gas crisis.
He suggested that in order to tackle the current situation it is necessary to enhance the efficiency of domestic workers and develop the country's infrastructure.
Handling the impediment caused by EU recession calls for cutting the cost of production, but power crunch and hefty bank interest rates are not allowing the producers to cut costs, the expert said.
Meanwhile, producers are surveying newly emerging markets to reduce reliance on traditional markets, he informed.
Fibre2fashion News Desk - India
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