In the last fiscal year, deemed export earnings of garment accessories and packaging stood at $6.12 billion, which is 9.28% higher compared to $5.6 billion in the fiscal year 2014-15.
The industry people hope that the figure will be more than double to $12 billion by 2018.
The backward linkage industry, however, has directly exported accessories and packaging products worth $610 million in the same period.
RMG industry, the highest foreign currency earner, earned $28.09 billion, posting a 10.21% rise while deemed accessory exports made $6.12 billion with 9.28% contribution in the last fiscal year.
The accessories and packaging sector is considered a strong backward linkage industry for the country’s apparel industry, the lifeline to export earnings. It saves foreign currency by providing accessories alongside helping to meet lead time.
Bangladesh has production capacity to meet the local demand and even it can export directly, but the growth of earning from accessory exports depends on RMG export as we are shadow exporters,” Abdul Kader Khan, president of Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA) told the Dhaka Tribune.
Khan apprehended that the recent terrorist attack on Gulshan Holey Artisan Bakery may affect the sector as the attack was aimed at foreigners involved in RMG-related business.
RMG sector, the lifeline for the country’s economy, is moving ahead to reach the $50 billion export target by 2021, he said, adding that the accessories industry would play a vital role in this matter.
BGAPMEA leader thinks that his sector can contribute $10 billion to achieve the target.
He also urged the government to provide them with cash incentives to turn out to be direct exporters.
Bangladesh has a huge potential for exporting accessory products, he said, adding that “I think the government should come up with initiatives to help the manufactures to explore direct export market.”
“If the government provides support, the sector could be another export earner in near future as we are now self-sufficient in meeting local demands.”
Currently, local manufacturers of accessories and packaging are capable to meet 90% local demands.
Alone with the deemed exports, the sector can also directly export 20% accessory products to the global markets.
