The New Nation - Internet Edition

UNB, Dhaka

Export earnings in the first two months (July-August) of the current fiscal year fell 23 percent short of the period's target of US$ 2,642 million due to decline in export volume.

It also declined about 12 percent to US$ 2,033 million from US$ 2,302 million during the same period last year, according to figures released Thursday by Export Promotion Bureau (EPB).

The government set an export target of US$ 14.5 billion for the fiscal 2007-08 with a growth rate of 19.07 percent over 2006-07.

"Manufacturing activities were mostly affected for lack of business confidence amid ongoing anti-corruption drive," said an apparel industry exporter.

He said the export figures would continue to show sluggish trend until September '07, but predicted an up-trend from October onwards with increased shipments.

According to EPB figures, export quantity declined 11 percent in July-August while prices declined over one percent. However, prices of primary products increased about 9 percent, but declined about 2 percent in case of manufactured products.

Earnings from main export sector suffered setback during the period with woven garments falling about 23 percent short of the target to US$ 762 million and declined 17 percent from the same month previous year.

Knitwear also dropped 20 percent from the target to US$ 792 million and 12 percent from July-August '06.Earnings from frozen food exports fell 9 percent short of the target to US$ 99 million, but recorded 2 percent growth from the same months in previous year.

Other major items recording decline from the target and previous year's performance were home textiles, engineering products, handicrafts, leather and leather products, chemical products, ceramic products, computer services, jute goods, petroleum byproducts and terry towel.

Export earnings from vegetables, tea, cut flower and agro-processed foods crossed the target of the period and also last year's performance while raw jute, footwear and electronics did better than last year's performance but fell short of their respective targets.