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RMG exports shake off credit crunch fallout

Refayet Ullah Mirdha
The export promotion boss yesterday ruled out any fallout from the global credit crunch on Bangladesh's garment exports after two main items, woven and knitwear, registered 44.66 percent growth in the first quarter of the current fiscal year.
In September alone, both woven and knitwear registered a 45.26 percent rise in exports from the same period of the previous fiscal year, according to the data of Export Promotion Bureau (EPB).
Speaking to The Daily Star, EPB Vice-chairman Shahab Ullah said he does not agree with the recent prediction by the International Monetary Fund (IMF) of a fall in exports from Bangladesh to a single digit, if hammered by the global financial recession.
"In fact, some new markets for Bangladeshi export items especially for the woven and knitwear items have been found recently as the country mainly concentrates on the production of basic items," Shahab Ullah said.
He suggested the apparel exporters diverse both products and markets to grab more and more market shares and customers.
Shahab Ullah said the EPB had held an "important" meeting with the people of major export-earning sectors where all agreed that there might not have a negative impact on the exports of local items in the wake of the
global financial recession.
In September, Bangladesh earned $492.08 million from the exports of woven items, up from $485.90 million in August. The figure was $353.78 million in September of fiscal 2007-08.
According to the EPB data, Bangladesh earned $620.94 million from the exports of knitwear in September, which was $569.64 million in August. It was $412.46 million in September of the last fiscal year.
In the first quarter (July-September) of the current fiscal year, the woven subsector fetched $ 1.525 billion, registering 36.67 percent growth. In the case of knitwear, the export was recorded at $1 831 billion, which means 52.05 percent growth.
The EPB chief said the actual earnings from the overall exports were $4,381 billion against the threemonth target lor $4,014 billion.
The overall exports grew 42.40 percent in the first quarter of the current fiscal year, from the same period of the last fiscal year, according to the EPB data. The total annual export target had been fixed at $16,298 billion for fiscal 2008-09.
Asked, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Anwar-Ul-Alam Chowdhury Parvez said: "Until now the exports of Bangladeshi apparel items seem safe from the global financial recession."
But the exports in December and January may not be the same as in the previous months, as the orders normally slow in the period, the BGMEA chief said.
But it is expected that the export will again go up in April significantly as many buyers of different global brands are coming to Bangladesh.
reefat@thedailystar.net