Bangladesh's knit goods export growth is likely to surpass all previous records this year, as demand continues to grow in European Union (EU) markets, media reports say.

"There is a huge demand of our high-quality knitwear products in the EU countries, as those are comparatively cheaper than the products of our rival countries like China and India," First Vice-President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Mr Habibur Rahman told the Financial Express FE) on Sunday.

"Bangladeshi knit goods such as T-shirts, polo-shirts and others are very popular among the Europeans for their competitive price and high standard. Though there were economic crises in Greece and Ireland recently, the demand for Bangladeshi knitwear products is still high in the rest of Europe," Mr Rahman said.

"We hope to receive a substantial number of orders from the European buyers from mid-August. Bangladesh can take the leading position in the EU knitwear markets, if yarn price in local market remains stable."

According to the report Mr Rahman said that apart from ensuring smooth supply of power and gas to the factories, political stability is important to surpass the previous export growths. Timely shipment of knit products to the buyers should also be ensured, he said.

According to the FE, Mr Rahman said:

"We want to see a vibrant economy that will be free form hartal. We can easily surpass the Chinese stake in the EU markets, if we get a strike-free environment."

"We face difficulties in transporting raw materials, and many workers cannot come to their factories during hartal. The units also face trouble in procuring diesel, used as alternative source of power, as most of the stations remain shut during hartal," he also said.

"All these factors ultimately hamper the production of knitwear products and delay their shipments."

"It takes at least 25 days to send products to the EU countries from Bangladesh via either Singapore or Sri Lanka. The foreign buyers are very firm on maintaining the due date of shipment."

The BKMEA leader said if there is any delay in shipment of products, the knitwear exporters have to count a huge amount of money - then it gets difficult for them to offset the financial loss, the report said.

According to the FE, at present there are about 1700 knit goods factories affiliated to the BKMEA and during the fiscal year (FY) 2010-11 the export growth of the local knitwear sector was 46.25%, with total earnings of $9,482.06 billion.

In the FY 2009-10, growth was only 0.84% due to the global recession. In the FY 2008-09 the growth was 16.20%, and in the FY 2007-08 it was 21.50%, the FE said.

Source: The Financial Express