The country’s export earnings from readymade garment in the financial year 2020-21 would be $11 billion short of the target $50 billion set by the government, according to a recent estimate of textile and jute ministry.
The estimate shows that the earnings from RMG in the FY21 would be $38.73 billion, against $50 billion target set by the government for the fiscal in 2015.
Against this backdrop, the government has taken a move to set export earnings target at $51 billion from textile and clothing sector including RMG, packaging and accessories and home textile as export trend showed that $50 billion target by FY 21 would not be achieved alone from RMG, high officials of the government and the industry people said.
As part of the move, the textile and jute ministry on Wednesday held a meeting with the stakeholders to find out the deficits and the possible solutions.
Representatives from different government agencies including Department of Textile, Bangladesh Textile Mills Corporation and private sector trade bodies including Federation of Bangladesh Chambers of Commerce and Industry, Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Knitwear Manufacturers and Exporters Association, Bangladesh Textile Mills Association, Bangladesh Garments Accessories & Packaging Manufacturers & Exporters Association and Bangladesh Specialised Textile Mills & Powerloom Industries Association.
According to the meeting minutes, the government has set earnings target from RMG at $32.69 billion for the current financial year and it would be exceed the target but the earnings for the FY 20 would be $35.62 billion against the target of $44.68 billion for the fiscal.
We have discussed the re-fixation of export targets for textile and clothing sector with inclusion of accessories, home textile and terry-towel sub-sectors. Along with the export earnings target, stakeholder placed some recommendations to increase export, textile secretary Md Mijanur Rahman told New Age on Saturday.
According to the secretary, in the meeting, they proposed export earnings target to be fixed at $51 billion from textile sector for FY 21 including $38.73 billion from RMG, $11.22 billion from packaging and accessories and $1.06 billion from home textile and terry-towel.
The meeting emphasised the production of high value added diversified products including suit, women wear, sportswear, intimate wear and swimming wear to face the challenges of present shortfall of export, the textile secretary said.
Weakness in infrastructures including road communication and port also discussed in the meeting, Mijanur said.
Not only textile ministry, many other ministries including finance, commerce, foreign and labour would have to play roles to achieve the export target and mitigate the existing challenges. We will arrange more meetings on the issue as 81 per cent of total export earnings come from textile sector, he said.