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the global market for knitwear exports, leaving India behind, the
head of the country's knitwear industry group said this week.
Talking exclusively with bdnews24. com on Friday BKMEA president
Fazlul Hoque said Bangladesh has been lucky, but he warned there was
nothing to be complacent about. "We exported knitwear worth $6.43
billion in FY 2008-09 , despite the recession, which is up by 16
per cent in comparison to the prior fiscal year," Hoque said, adding
that growth could have surpassed 30 per cent had the global
recession not hit. According to Export Promotion Bureau figures,
Bangladesh earned $15.26 billon in the past fiscal of which $6.43
billion came from the knitwear sector and $5.92 billion from the
woven apparels sector. India, meanwhile, saw a 25 per cent slump in
knitwear export in the last quarter, said Hoque. "We are optimistic
about reaching second position leaving Turkey behind by the year
2010. " The global economic meltdown may be opening up new prospects
for the Bangladesh knitwear industry, despite both prices and exports
witnessing a decline due to the slump, said Hoque. "The negative
impact on export was not as intense in Bangladesh as it was on other
countries." "This recession may be a boon for the knitwear industry
provided power supply and government policy support are in place. Many
countries will be weak from the recession. But we will be able to
enter new markets as we export comparatively low cost apparels and
cheap labour," said Hoque. The BKMEA president expressed some
frustration over the government's promised support to export sectors
so far, in fighting the recession. "The government has allocated Tk
5000 crore for the export sectors in the current budget to offset
the loss from the recession. But there was no discussion over how the
money will be spent. " The finance minister in a post budget press
conference on June 12 said this issue would be settled in discussion
with exporters, but no such initiative has yet been taken, said
Hoque. Hoque said smaller knitwear industries are going through
difficulties; if they do not get assistance they may collapse. Hoque
also urged all concerned to be aware that the country's image to
international buyers does not become sullied due to unrest in the
garment industries. "Vandalism and arson in the industry in the
name of worker unrest cast a negative image abroad leading to
negative impact on exports." He advocated exemplary punishment to
those responsible for recent unrest, that involved arson and riots
in Savar, to prevent a repeat of violent incidents in the garment
industries.
