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Exports rise as orders shift from China

Refayet Ullah Mirdha
Exports grew 29.76 percent to $2.06 billion in December, compared with the previous month, as apparel orders shifted from China to Bangladesh.
The earnings in December fell 11.15 percent short of the periodical target, according to data released by the Export Promotion Bureau (EPB) yesterday. Companies sold $1.60 billion worth of products overseas in November.
Exports rose 3.85 percent in December from the stone period a year earlier, according to data.
In the July-December period, the first six months of fiscal 2011-12, Bangladesh's exports grew 14.72 percent to $11.78 billion, compared with the same periodofthe previous fiscal year, the data showed.
However, export earnings in July-December were 4.98 percent short of the periodical target.
Some major products such as knitwear, woven garments, wigs and human hairs, home textile, cement, footwear and frozen foods continued their growth momentum in July-December.
Bangladesh's knitwear exports rose 11.12 percent to $4.80 billion and woven garment exports increased 22.56 percent to $4.45 billion in July-December, compared with the same period ayear ago.
But both knitwear and woven, the country's main export items, fell short of the periodical export target by 5.12 percent and 0.30 percent respectively in July-
December, compared with the same period ayear ago.
Recently, the orders from international buyers for some products such as leather and leather goods and handicrafts are growing along with other mainstream products, said Shubhashish Bose, EPB vice-chairman. As a result, the exports are rebounding,
he said.
Bose also said orders are shifting to Bangladesh from China — the reason for higher export growth despite the economic crisis in the EU. “Exports to the new destinations are also increasing at a faster rate while the next six months' trend is good,” he said.
Exports did not increase at the expected level, said Nasir Uddin Chowdhury, vice-president of Bangladesh Garment Manufacturers and Exporters Association.
Chowdhury said part of the reason for higher growth in December was, the international buyers shipped the orders, which were held up earlier, to close the year.
Bangladesh cannot utilise the full potential of the Chinese orders for capacity constraints, he said.
“The factory owners can hardly go for further expansion for the lack of gas and electricity crisis,” Chowdhury said.
The other obstacle in expansion is, there is no space for industrial plots in the country.
reefat@thedailystar.net