RMG export growth may be reduced 20pc in Oct

Staff Reporter :
The export growth in ready-made garments (RMG) may be reduced 20 per cent year-on-year in October due to the ongoing energy crisis, fall in work orders and higher inflation in major export destinations, said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
“There is an energy crisis around the world. Gas-power crisis at home is affecting our garment industry as well. The crisis is increasing industrial costs in two ways,” he said, adding, “Firstly, generators are being run on diesel due to the power shortage. Secondly, the generators are being out of order frequently for running a long time. These are increasing cost of production cost.” “So, we request the government to ensure uninterrupted supply of gas and electricity to the apparel industries under special arrangements to revive the country’s vital export sector,” Faruque Hassan said this while speaking at a press conference at BGMEA office in the capital on Sunday.
He mentioned that there was continued growth in RMG export from August last year to August this year. About $42.6 billion was earned from RMG exports in the last financial year.
“However, the RMG export growth has been decreasing in the last two months. The growth decreased 7.52 per cent year-on-year in September this year. In October, the export growth may be decreased 20 per cent,” he said, citing a projection of BGMEA.
Faruque Hassan also said that the RMG export growth is likely to reduce even further in November if the energy supply situation at factories does not improve and the Russia-Ukraine war does not come to an end. “If the current trend of apparel shipment continues, the sector’s export goal of $46.80 billion may not be achieved,” he said.
 In the last fiscal year, Bangladesh shipped garment items worth $42.61 billion, according to data from the Export Promotion Bureau.