Garment exports dip 1.92% at start of fiscal year

Garment exports dip 1.92% at start of fiscal year

Bangladesh's readymade garment exports saw a slight decline of 1.92 percent in July, the first month of fiscal year 2026-27, according to Export Promotion Bureau data. Exports stood at $3.89 billion, down from $3.96 billion in July 2025. The BGMEA, however, views this marginal decline as normal, attributing it to the 'base effect'. July last year recorded $3.96 billion in exports with 24.67 percent growth – one of the strongest months in the country's export history. Despite current challenges, exports of nearly $3.9 billion demonstrate the industry's resilience.

Industry owners identified the severe gas crisis as the biggest challenge facing the garment sector. Many factories are unable to operate at full capacity due to prolonged low gas pressure, forcing them to adjust schedules, reduce shifts or suspend production periodically. This is increasing production costs and hampering timely deliveries to international buyers. Geopolitical instability in the Middle East, global supply chain uncertainty and fluctuating international demand are also putting pressure on exports.

EPB data shows woven garment exports fell 3.16 percent in July, while knitwear exports declined only 0.90 percent. The knitwear sector has remained relatively stable, supported by strong international demand for T-shirts, sweaters and other knit products. BGMEA's Utilisation Declaration (UD) data also shows a decline of about 2.8 percent in July compared to the same period last year, indicating some stagnation in export activities.

The BGMEA stressed that improving market conditions alone is insufficient. Long-term competitiveness requires ensuring energy security, controlling production costs, improving port and logistics systems, and providing timely policy support. If gas and electricity supply normalises, exports could return to positive growth in coming months.

Competitor countries like Vietnam, India, Cambodia and Indonesia are strengthening their global positions with improved production capacity and supply chains. International brands now prioritise fast delivery, eco-friendly production and sustainable factories – not just low costs. Resolving the energy crisis quickly has therefore become a prerequisite for Bangladesh's survival in global competition.

Despite the adversities, the BGMEA believes the start of the new fiscal year is not disappointing. Maintaining exports of $3.89 billion after one of the highest bases in history reflects the industry's resilience. The organisation remains hopeful that exports will trend upward again if energy supply normalises and policy support continues.