Garment makers said the largest volume of trade in all of these destinations is still exported from Bangladesh
Increasing garment exports from India and Pakistan to the U.S. and European markets will not affect Bangladesh’s export earnings, the garment makers said.
India and Pakistan are neighboring competitors of Bangladesh in garment exports.
They also said that the largest volume of trade in all of these destinations is still exported from Bangladesh.
In addition, exports to Europe and the United States from India and Pakistan have increased according to their own statistics, and Bangladesh has nothing to worry about.
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According to Eurostat Trade, Bangladesh’s clothing exports grew 18.3% year-on-year in the first seven months (January-July) of 2021 compared to the same period of 2020 in the European market, from $ 7,756 million to $ 9,176. million.
Meanwhile, two neighboring countries, India and Pakistan, recorded an increase of 22.23% and 27.89% respectively, exporting clothing products worth $ 2,032 million respectively to $ 2,483 million and from $ 1,304 million to $ 1,661 million, according to Eurostat.
The United States Office of Textiles and Apparel (Otexa) also released the apparel product sourcing data for countries in South Asia during the same period.
According to Otexa data, Bangladesh exported clothing worth $ 3,701 million in the first seven months of 2021, an increase of 28%, from $ 2,891 million in the same. period of 2020.
Meanwhile, India exported clothing worth $ 2,318 million, or $ 1,742 million in 2020, and Pakistan exported $ 1,163 million, or $ 688 million in 2020, ensuring growth of 33.1% and 69.1% respectively, according to data from Otexa.
But Bangladesh garment makers have said this is a temporary scenario and the country should not worry about it as it is their own export statistics.
In this regard, Shahidullah Azim, vice president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) told Dhaka Tribune that Europe and the United States are Bangladesh’s top export destinations.
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“The large volume of clothing products that are exported to these two destinations from Bangladesh every year is much higher than India and Pakistan,” he added.
He also said that exports from India and Pakistan have increased in these destinations compared to exports in previous years.
“It’s not related to exports from Bangladesh. They are increasingly sourcing from these countries, as well as from Bangladesh significantly. “
Moreover, he called this a temporary problem, adding that there were a lot of purchase orders from these two destinations in Bangladesh.
“So I hope that our exports will increase further to the EU and the United States in the coming months,” he added.
Some clothing manufacturers have also said that the recent visit by BGMEA executives to the United States and fruitful discussions with European buyers will further boost exports to these destinations.
They also hope Bangladesh can attract more US and EU orders if sartorial diplomacy works effectively.
However, garment makers have also said that exports from India and Pakistan may have increased due to differences in yarn prices.
The price of yarn in these two countries is comparatively lower than it is in Bangladesh, they said.
According to industry insiders, the current price of cotton in the world market is around 95 cents per pound.
Bangladesh is the second largest importer of cotton for the production of 30-thread count, the main raw material for knitting articles.
The price of 30-thread count yarn per kilogram (kg) in the local market is $ 4.10 to $ 4.15, which is higher than most other garment-producing countries, they said.
They also said that the price of yarn in India is $ 3.60 per kg, which is much lower than it is in Bangladesh.
A managing director of AKH Fashions Limited, based in Savar, said that India and Pakistan could benefit from advantages due to the difference in the prices of raw materials.
“But we are confident that Bangladesh’s exports to major destinations will increase soon,” he added.
He also said that they should have appropriate strategies to attract more buyers from destination countries.
“In this regard, Bangladesh needs to develop its own fashion design studios, diversify its product basket and focus on man-made fibers to build a sustainable garment industry,” he added. .
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Bangladesh is the second largest exporter of clothing to the world market after China. The clothing sector generates over 83% of the country’s export earnings.
Bangladesh exported clothing items worth $ 31.45 billion in the last fiscal year.
According to the BGMEA, there are over 4,000 garment factories employing nearly 4 million workers.
The number will be higher if the backlink industries and their workers are included.