Bangladesh’s RMG exports reach US $ 10.34 billion in Q3, value addition slightly declines
Bangladesh has reported a total export of US $ 10.34 billion in ready-made garments (RMG) for the third quarter of the 2024-25 fiscal year (January-March), according to the latest quarterly report from Bangladesh Bank. During this period, the country spent US $ 4.25 billion on importing raw materials, including cotton, yarn, fabrics, and equipment, resulting in a value addition of 58.9 per cent. This figure marks a slight decrease from the previous quarter’s value addition of 61 per cent.
In the first quarter (July-September), Bangladesh exported US $ 9.51 billion worth of RMGs, with raw material imports totaling US $ 3.84 billion, leading to a value addition of 59 per cent. The second quarter (October-December) saw exports of US $ 1.37 billion and raw material imports of US $ 4.04 billion, which resulted in a 61 per cent value addition.
The Bangladesh Bank report notes that net exports or value addition are calculated by subtracting the cost of raw material imports from garment exports. Many industry analysts also consider actual export earnings as the true measure of sector value addition.
Meanwhile, the Export Promotion Bureau (EPB) has reported an overall increase in product exports over the past two fiscal years. The value addition in RMG exports rose from 59 per cent to over 67 per cent during the October-December quarter of the 2022-23 fiscal year. Over the next five quarters, the value addition hovered between 70 and 72 per cent. However, after revisions, it was observed that the value addition declined to 62 per cent in the January-March and April-June quarters of that fiscal year. Additionally, the value addition decreased from 57.5 per cent to 61.5 per cent across the four quarters of the 2023-24 fiscal year.
Industry experts suggest that while export earnings continue to grow, maintaining and improving value addition remains crucial for the sector’s sustainability and competitiveness in the global market.
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