Exports dropped slightly in September from a year ago, which, analysts say, is a first sign of the long-term impacts of last year’s drawn-out political unrest and Rana Plaza building collapse.
“We are starting to see the impact of last year’s events now,” said Atiqul Islam, president of the Bangladesh Garment Manufacturers and Exporters Association, adding that exporters are now receiving the payments for shipments made between September and December last year.
Exports last month came to $2.55 billion, down 1.54 percent year-on-year, according to data from the Export Promotion Bureau.
The figure, however, exceeded the monthly target by $210 million, and is also an increase over the August receipts of $2.15 billion.
In the aftermath of the Rana Plaza collapse, many retailers cancelled their orders from the factories housed in shared buildings and diverted them to other countries, Islam said.
The interruption in shipments for the political unrest also compelled many to cancel their orders, the BGMEA president added.
Garment exports, which typically account for 80 percent of the country’s exports, raked in $2 billion last month, down 2.44 percent year-on-year.
Jute and jute goods exports in September stood at $54.99 million, a year-on-year slump of 26.53 percent.
The BGMEA president, however, expects the scenario to change sooner.
“The clean chit on our factories’ soundness from the two foreign agencies — Accord and Alliance — will go some way towards changing the international retailers’ minds,” he said.
Source: The Daily Star
