Low prices cut in to RMG traffic growth: analysts

RMG

A extreme rebate in prices of cotton, chronicle as well as fabrics has slowed down traffic growth, analysts as well as exporters said.

As a prices of tender materials have been low, a products have turn cheaper as well as a buyers right away compensate reduction for their mantle purchase, they said.

According to Export Promotion Bureau (EPB) statistics, altogether exports grew by usually 2.4 percent in Nov this year compared to a same month in a prior year. The expansion was 15.44 percent in Oct as well as 2.29 percent in September.

But a mercantile 2011-12 proposed with a tall goal — 28.7 percent expansion in traffic in July, a initial month of a year, as well as 32.4 percent in August.

“We’re removing a lot of orders. The buyers right away wish to place orders for a subsequent 6 months during a time to money in upon a benefaction marketplace price,” pronounced Mahmud Hasan Khan, handling senior manager of Rising Group which has both attire as well as spinning business.

The prices of tender materials such as cotton, chronicle as well as fabrics have come down by 50-60 percent right away from which of Jan this year, he said.

The cost of during large used up 30-count chronicle has come down to $3.2 a kg right away from $5.5 in January.

“As a prices of tender materials went down significantly, expansion in traffic in conditions of value additionally slowed down,” pronounced Khan.

Exports of knitwear as well as woven, which comment for a country’s two-third of $22.93 billion traffic gain per year, loiter during a back of a vital traffic aim for July-November this mercantile year.

Bangladesh’s knitwear traffic was $3.99 billion during July-November of 2011-12, down by $105 million than a aim for a same period. Similarly, woven traffic was reduction by $66 million than a target.

Mustafizur Rahman, senior manager senior manager of Centre for Policy Dialogue (CPD), pronounced this year’s traffic expansion in conditions of value would uncover a downtrend due to a pointy tumble in a prices of tender materials.

“Depressed tender element marketplace this year compared to final year could be a reason for a slack in traffic growth,” pronounced Rahman. He pronounced a prices of string as well as chronicle were 60 percent up final year than their benefaction value.

Still he sees hurdles for Bangladesh’s exports due to a tellurian mercantile situation.

“The stream Euro debt predicament is expected to have inauspicious implications for Bangladesh’s exports in general, as well as exports of apparels in particular, in a EU. The initial pointer of this is already there,” pronounced Rahman.

The CPD boss, however, forecasts a stand in number expansion during a finish of this mercantile year.

The research found 10 vital traffic sectors which warranted $22.18 billion or about 97 percent of Bangladesh’s $22.93 billion value of exports in mercantile 2010-11 have been combinedly lagging during a back of a aim so distant this mercantile year.

The vital traffic drivers have been knitwear, woven, jute as well as jute goods, home textiles, solidified foods, cultivation products, engineering products, footwear, tanned hide as well as specialised textiles.

The vital aim for these sectors for July-November duration of a stream mercantile year was set during $9.52 billion, nonetheless they combinedly warranted reduction than $9.25 billion.

Jute as well as jute products traffic was reduction than scarcely twenty percent of a target, home textiles twenty-one percent as well as specialised textiles scarcely eighteen percent.

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