In the third quarter (January-March) of the financial year 2023-24, Bangladesh’s readymade garment sector achieved a record high value addition of 72.20 per cent, up from 71.06 per cent in the same period of FY23, largely driven by heightened shipments of knitwear and other high value-added items.

According to a Bangladesh Bank report titled ‘Quarterly Review on RMG: January-March FY24,’ the import value of raw materials such as raw cotton, synthetic/viscose fiber, synthetic/mixed yarn, cotton yarn, and textile fabrics and accessories for garments totaled $3.84 billion in January-March FY24, constituting 27.80 per cent of total RMG exports.

The report further highlighted that net exports from the RMG sector reached $9.97 billion in the third quarter of FY24, marking an 18.70 per cent increase from $8.40 billion in the preceding quarter and a 14.49 per cent increase from $8.71 billion in the same quarter of FY23.

During the third quarter of FY24, RMG export earnings stood at $13.81 billion, reflecting a 17.30 per cent increase compared to $11.77 billion in the previous quarter and a 12.69 per cent increase compared to $12.25 billion in the corresponding quarter of FY23.

Previously, the highest value addition in the readymade garment sector was recorded at 71.48 per cent in the April-June quarter of FY23, and in the second quarter (October-December) of FY24, it was 71.35 per cent.

Mohammad Hatem, Executive President of Bangladesh Knitwear Manufacturers and Exporters Association, noted that local value addition in knitwear products exceeded 85 per cent, contributing significantly to the sector’s overall value addition of 72.20 per cent, buoyed by increased knitwear shipments following the initial impact of the Covid pandemic.

Hatem highlighted a shift in export dynamics, with knitwear now accounting for 55 per cent of shipments compared to woven garments’ 45 per cent.

He also mentioned an uptick in the shipment of high value-added woven products.

The Bangladesh Bank data indicated that export earnings from knitwear in January-March FY24 reached $7.53 billion, a 16.26 per cent increase from $6.47 billion in the same quarter of the previous fiscal year, surpassing its target by 1.69 per cent.

Meanwhile, export earnings from woven garments in the third quarter of FY24 totaled $6.28 billion, up by 8.69 per cent from $5.78 billion in FY23’s corresponding quarter.

In January-March FY24, RMG exports to Bangladesh’s nine main destinations— the United States, Germany, the United Kingdom, Spain, France, Italy, the Netherlands, Canada and Belgium— totaled $9.32 billion.