According to a review carried out by Bangladesh’s central bank, the Bangladesh Bank (BB), value addition in the country’s readymade garments sector dropped by 3.31 percentage points in the July-September quarter of the fiscal year of 2019-20 compared with that in last fiscal year as the country’s exporters were losing competitive edge due to overvalued local currency and increasing cost of doing business.
The value addition in the sector, which is the country’s biggest foreign currency earner, dropped to 61.01 per cent in July-September of FY20 from what was 64.32 per cent in FY19, stated the report.
Bangladesh’s garment manufacturers imported raw materials worth US $ 3.14 billion in July-September of FY20 as against export of US $ 8.06 billion in the period. The import of raw materials represents 38.99 per cent of the country’s export value.
In FY19, the sector imported raw materials worth US $ 12.18 billion, which represent around 35.68 per cent of the RMG export value.
The export earning of the RMG sector in FY19 was US $ 34.13 billion.