Bangladesh’s apparel export continued its poor run after its export earnings suffered a dip in October, falling by 17.2 per cent year-on-year. And this after the country missed the export target by 11 per cent in the first quarter of 2019-20 fiscal year.
The continuing trend of falling exports and export earnings has now emerged as a major concern for the industry and as per Bangladesh Commerce Minister Tipu Munshi undercutting and unfair competitors amongst the garment makers in an effort to rope in the buyers are the major reasons behind this export debacle.
“The traders have a problem. It’s their fault. They are not getting fair price because they themselves are undercutting the prices,” said the minister in response to several demands made by the industry leaders at a meeting in Dhaka recently.
It may be mentioned here that as per data, Bangladesh exported goods worth a little over US $ 3.07 billion last month, which is nearly 17.2 less than the exports in the same month last year and around 12 per cent less than the target.
The exports until now this fiscal year (July-October) dropped 7 per cent year-on-year and missed the target by 11.21 per cent.
Munshi, reminding that he himself is an apparel entrepreneur, said, “I know the problem. It is often seen that they have cut prices to get work orders. That has an impact on the total export earnings. ”