The export of Ready Made Garments (RMG) in the neighbouring country India has declined 22.31 per cent in the first nine months of the current fiscal year compared to the same period of the last year.
On the other hand, RMG exports have increased in the regular markets. Swanirbhar Bharat Andolon (Self-reliant India Movement) is being blamed for the decrease in demand and export of Bangladeshi RMG.
RMG businessmen said they can’t compete with market competitors due to the additional price of electricity, inadequate gas supply, and hike in wages. They said the information on exports in India reflects the overall exports of Bangladesh.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh exported RMG worth $545.18 million in India from July to March of the 2023-24 fiscal year which was $830.51 million in the same period of the previous year.
At the same time, the export of knitwear and oven cloths has also decreased. Bangladesh exported knitwear worth $267.90 million in the first nine months of the current year which is 25.90 per cent less than the last year and oven clothes worth $378.17 million which is 19.57 per cent less compared to the previous fiscal year.
Local producers said although the RMG export has declined in India, it has increased in some untraditional markets including Japan, Australia, Russia, Korea, China and the United Arab Emirates. The RMG export has increased in these countries from 6 to 50 per cent, they added.
According to the latest data, Bangladeshi RMG export has also declined in Mexico. Bangladesh exported RMG worth $258.57 million which is 2 per cent less than the last fiscal year.
RMG exporters said India has increased its capacity to meet local RMG demand. For this reason, the Indian government is providing policy support to the RMG factory owners. Indian state Gujarat has boosted its RMG production capacity for the last few years. The cost of RMG production has increased in Bangladesh due to the hike in gas and power prices alongside Indian competitors. Besides, wage hike is another challenge for Bangladeshi RMG owners. For these three reasons, Bangladesh is losing competition capacity in the global market. On the other hand, harassment at the customs department is a regular issue to the exporters.
Mohammad Hatem, the executive president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) said, “We are not accepting new RMG orders at under cost of production. The demand of RMG has declined to the main buyers including the United States, the United Kingdom and the European Union.”
@ The article was published on print and online versions of The Bangladesh Pratidin on May 30, 2024 and has been rewritten in English by Golam Rosul.
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