Export Promotion Bureau (EPB) data shows that despite a decline in imports of ready-made garment raw materials, Bangladesh was able to maintain export earnings during the last 1.5 years, from July FY ’23 to December FY ’24.
Bangladesh’s imports of RMG raw materials, raw cotton, yarn, fabric, and dyeing materials, on the other hand, decreased 17.3 per cent year over year to US $ 7.92 billion in the first half of FY ’24 and 22.20 per cent year over year to US $ 17.31 billion in the whole FY ’23, according to central bank data.
Despite the decreased trend in imports, RMG export growth was 1.72 per cent to US $ 23.39 billion year over year in H1 FY ’24 and 10.27 per cent to US $ 46.99 billion year over year for the full FY ’23, according to EPB data.
71 per cent of Bangladesh’s apparel exports, according to the BGMEA, are made of cotton. However, imports account for 99 per cent of the nation’s cotton needs. Through imports and local spinning mills, garment manufacturers are able to meet their demand for yarn and fabric.
Data from the Bangladesh Textile Mills Association (BTMA) indicates that 519 spinning mill operators are generating yarn, satisfying over 70 per cent of the regional demand.
Central bank data shows that in the first half of FY ’24, raw cotton imports declined year-on-year by 38.9 per cent to US $ 2.68 billion. In FY ’23, raw cotton imports were down by 3.71 per cent to US $ 4.27 billion, compared to the US $ 4.44 billion recorded in FY ’22.
Three types of fabric are typically imported into Bangladesh: cotton, man-made fibre (MMF), and mixed. Approximately 98 per cent of Bangladesh’s MMF demand comes from imports. The first half of FY ’24 saw a decline in these fabric imports, according to central bank data.
In this time frame, imports of fabric decreased by 13.4 per cent to US $ 3.66 billion, while imports of man-made fibre decreased by 11.6 per cent to US $ 686 million annually.
In the meantime, year-over-year, fabric imports fell by 20.5 per cent to US $ 7.94 billion and MMF imports by 7.66 per cent to US $ 1.45 billion over the full FY ’23.
Industry insiders claim that since the middle of 2022, they have been experiencing order shortages as a result of global economic headwinds that compelled them to cut back on the import of raw materials.
In light of the situation, they questioned the accuracy of EPB data about Bangladesh’s export growth and requested the Government to release relevant data to help guarantee that the right policies are in place.
