The New Nation - Internet Edition

Mashiur Rahaman

Readymade Garments (RMG) manufacturers and exporters in Bangladeshi are expecting to double their export earning by the year 2010, being patronised by the diminishing dollar rate.

According to Bangladeshi RMG producers, sharply weakening dollar has been encouraging international buyers to rush into Bangladesh, switching their orders from its rival China and India, as their currencies have appreciated strongly against the US greenback.

"Our manufactured products have become cheaper due to this falling dollar rates. We are now getting more orders then ever," said official from the Bangladesh Garment Manufacturer and Exporters Association (BGMEA).

The leading garment-making group has forecast that the annual exports would nearly double to hit $18 billion by 2010. Export earnings from this major Bangladeshi item obtained $9.3 billion out of a total $12.18 billion in national export earnings in the last financial year 2006-07.

According to the Export Promotion Bureau (EPB) statistics, export earning in the Knitwear during the July to December period in FY2007-08 witnessed a significant growth of 39.26 per cent compared to its corresponding period last year. The RMG sub-section recorded Tk 17,504.56 crore earning in the first half of current financial year where it was Tk 16,306.88 crore in FY2006-07.

Earning from the Woven Garments was also recorded 35.70 per cent higher within a year. Earning was recorded at Tk 15,916.98 crore in July to December period of current financial year. The export earning was Tk 16,31.86 crore in FY2006-07 of the same period.

"We are confident that the garments exports will reach $11 billion by the end of FY2007-08. It is expected to cross $18 billion by 2010 if this trend continues," said Anwar ul Alam Chowdhury Parvez, head of the BGMEA.

But soaring food costs could cloud the picture by creating labour unrest that may disrupt output, he warned warned.