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Knit export may lead the apparel exports

imagesApart from the existing European market, new export destinations for knitwear garments are helping increase country’s export volume every year, sources said.

According to BKMEA sources, knit readymade garment export may exceed woven again this year in the next couple of months, sources said.

Performance of knit export is increasing every year and in five months of the current fiscal the average growth per month is more than 19 per cent which is near woven, according to the sources.

The sources said in the financial year 2011-12 knit export share of RMG was 49.69 per cent and woven was 50.31 per cent and in the last fiscal it was 48.69 for knit and 51.31 for woven.

Data shows in the fiscal year 2011-12 total knitwear export was $9.48 billion and in the 20112-2013 it was $9.6 billion.

Woven export in the year 2011-12 was $10.48 billion and it was $11.03 billion in the year 2012-13.

In the current fiscal the export amount of both knit and woven is equal and it is likely to exceed in the first quarter of the current fiscal, BKMEA sources said.

“In the first five months of the current fiscal the average growth rate of knitwear export is almost near the woven sector,” said BKMEA Third Vice President Mohiuddin Faruqui.

He said along with increased export of knitwear garments in the market new destinations in Europe are opening up and performance is also becoming better than the past years.

Mr. Faruqui said knitwear is likely to exceed the woven sector in next two months.

He said currently export performance share for knit and woven in total readymade export is almost the same and as the knit is increasing so it may soon exceed woven export.

According to data, woven export has been dominating RMG export from the very beginning and currently US is the main woven export market for Bangladesh.

Under the GSP facilities Bangladesh is exporting knitwear to the European markets at the lowest prices among all the exporting countries.

Mr. Faruqui said along with increased export performance of knit in the European market, new destinations have already been discovered in the markets of Middle East, South Africa, Brazil and China.

He said despite facing problems of transportation and ‘due time’ shipments the growth is good and if the lead time were reduced the export growth would have increased.

He said the knitwear is currently sourcing cotton yarns both locally and also importing from the neighbouring country through Benapole port.

He said when the new Pangaon Container Terminal goes into full operation it would reduce lead time and reduce costs.

Currently transportation cost is almost double due to political turmoil and the transport owners charge higher prices showing risks.

“Due to missing of sea shipments we have to go for air shipment to deliver our goods in time to the buyers,” Mr. Faruqui added.

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Report: Shamsul Huda

Source: Financial Express

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