Knitwear sector posts 44% growth in fiscal year 2010-11 but is hampered by cotton and gas crisis
The Knitwear sector posted a record 44 per cent growth in exports in the first nine months of the fiscal year, reaching 6.6 billion and exporters are hoping for a target of $9 billion dollars by the end of the financial year.
Bangladesh is now the world’s second largest exporter of knitwear after surpassing Turkey, its main competitor, in both volume and value. BKMEA said the country exported 7.78 billion pieces of knitted items such as T-shirts, sweaters in 2010 against Turkey’s shipment of 7.74 billion pieces.
However, regardless of a tremendous growth, the gas and cotton crises, combined, are suppressing exports reaching double figures.
The gas crisis, in particular, has affected the growth of the industry by halting production to only 55% of capacity. Otherwise the export figures would be at least double figures and could reach as much as $13 billion.
Negotiating deferred orders may appear to be a solution, but the spiraling prices of cotton pose a huge risk of loss. At present the cost of yarn is $6.10 per Kg compared to $3.10 last year.
Knitwear manufacturers have asked the government to help stabilize yarn prices and to resolve the gas crisis.
