Value addition in Bangladesh's RMG industry hits record low in FY22

04 Aug '22

1 min read

Pic: Mamunur Rashid / Shutterstock

A rise in prices of raw materials globally and worldwide supply chain disruptions have led to value addition in readymade garment (RMG) products in Bangladesh dropping to a record low of 54.37 per cent in the fiscal 2021-22 (FY22) from 59 per cent in FY21, according to a Bangladesh Bank report. Value addition had started declining since FY20, the bank data showed.

The value addition in FY20 decreased to 56.84 per cent from 64.32 per cent in FY19. Though value addition in RMG products slightly increased in FY21, it showed a downward trend in the first half of FY22.

Value addition dropped to 55.80 per cent in the July-December period in 2021-22.

The report, titled ‘Quarterly Review on RMG: April-June, FY22’, said RMG manufacturers imported raw materials worth $19.43 billion in the last fiscal against exports worth $42.61 billion.

Apparel exports in FY22 grew by 35.48 per cent while imports of raw materials increased by 51.2 per cent in the period, the data showed.

The surge in freight cost and business operation cost also contributed to the decline in value addition.

Fibre2Fashion News Desk (DS)

More Apparel/Garments News - Bangladesh...