Dhaka, Bangladesh (BBN)-A sharp fall in woven item exports has resulted to 19.78 percent shortfall in target of income from merchandise exports of the country in the month of October, Export Promotion Bureau (EPB) data revealed Monday.
In October, the country fetched only $1957.55 million against the target of $2440.20 million.
The shortfall in achievements was 19.78 percent, shows the EPB data.
Compared with the income of $2119.20 million in the same month last year, the shortfall is 7.63 percent, according to the data.
The state-run export promotion agency has also calculated 14.17 percent decline in woven exports over the target set by the government for July-October periods.
The July-October target for woven export was $4304.28 million while actual achievements came down to $3694.24 million.
Compared with the corresponding months last year, the shortfall was 4.40 percent.
The EPB says the income from total exports also went down by 0.97 percent during the corresponding periods of the current and previous year.
From July to October, the export income totaled to $9652.65 million in the current year while the income was $9747.17 million during corresponding months last year.
Readymade garment (RMG) exporters have stated that the fall in woven export was an impact of last year’s political instability across the country.
Analysts, however, said that the Rana Palza collapse and consequent altered scenario caused the fall in exports, particularly RMG products. But the RMG exporters differ with it.
After Rana Plaza collapse, buyers have found various non-compliances in Bangladesh’s RMG units including lack of safety measures and inadequate wage for workers and employees.
Thus, the fall in export income appeared to be a result of non-compliance and poor safety and working conditions at factory units.
Meanwhile, two major buyers’ platforms – Alliance and Accord – came ahead with huge funds to help RMG factories to improve compliance status.
The government also joined the endeavors of the buyers’ platforms in association with ILO (International Labour Organisation) to improve the RMG sector’s compliance standard.
The government is also optimistic of maintaining growth in merchandise exports, especially RMG goods, at the year-end and onward.
According to the EPB data, against the target of $33.20 billion during July 2013 to June 2014 fiscal, the country fetched $30.18 billion from merchandise exports.
BBN/MA/ANS-10Nov14-9:00pm (BST)