The exports of readymade garments from Bangladesh surpassed the target of US$ 24.147 billion set by the Government for the fiscal year 2013-14 that ended on June 30, 2014.
According to the latest data released by the Export Promotion Bureau (EPB), Bangladesh’s apparel exports stood at $24.491 billion during the year, showing an increase of 1.42 percent over the target set for the period.
In 2013-14, Bangladesh’s clothing exports surged by 13.83 percent to $24.491 billion, compared to exports of $21.515 billion made in the previous fiscal.
Segment-wise, woven apparel exports grew by 12.7 percent year-on-year to $12.442 billion during July-June 2013-14 period, whereas knitwear exports soared by 15.02 percent to $12.049 billion.
Knitwear and woven garments together accounted for about 81 percent of total $30.176 billion worth of exports made by the South Asian nation during the twelve-month period beginning July 1, 2013.
The 13.83 percent growth in clothing exports was greater than the 11.65 percent growth registered in overall exports from Bangladesh during the period under review.
In the first half of 2013-14, Bangladesh’s garment exports grew at 19.95 percent year-on-year. But, the growth rate dropped thereafter, mainly due to the implementation of the 76.66 percent rise in minimum wage for entry-level workers in the clothing industry since December 1, 2013.
With the presence of more than 5,000 garment factories that together employ nearly 4.2 million workers, Bangladesh is currently the second-largest garment exporter in the world, next only to China.
To help continuation of the development of the garment industry, the Bangladesh Government has reduced the duty on flex fibre, a raw material used to make the fabrics bright, from 10 percent to 5 percent for fiscal year 2014-15 that began on July 1, 2014. Likewise, the duty on artificial staple fibre was also reduced to 3 percent from the earlier 5 percent.
For fiscal year 2014-15, the supplementary duty on almost all woven fabrics was reduced from the earlier 30 percent to 20 percent, on most knitted or crocheted fabrics from 45 percent to 30 percent, on track suits and other garments from 45 percent to 30 percent, and on various clothing accessories form 60 percent to 45 percent.