Bangladesh Bank data reveals, value addition in Bangladesh’s readymade garment products dropped to 55.80 per cent in the July-December 2021-22 due to global increase in raw materials prices. As per a report by New Age Business, value addition in Bangladesh’s apparel products has been declining since fiscal 2019-20. In FY20, the value addition dropped to 56.84 per cent from 64.32 per cent in FY19. Though value addition slightly increased to 59 per cent, in FY21, it again declined in the first half of FY22.

Exporters attribute the drop to the pandemic which disrupted supply chain and increased prices of raw materials. Apparel exports in the first half of FY22 grew 28 per cent while imports of raw materials increased 54.46 per cent in the period. Md Shahidullah Azim, Vice President, BGMEA opines, value addition in apparel products has been declining due to increasing freight cost and business operation cost amid the pandemic. Md Fazlul Hoque, Former President, BKMEA adds, attributes the decline to many factors but hike in raw materials price is the most prominent. Besides, cost of doing business has increased amid the pandemic, Fazlul adds.