RMG export declined by nearly 5pc in August

The overall readymade garment export has declined again in August after a month which created a negative impact on overall export of the country. The country’s overall export has fallen by 2.93 per cent.

In the first 11 months of the 2024–25 fiscal, overall goods exports grew, but in the final month, June, ready-made garment exports fell by 6 per cent. In the first month of the current 2025–26 fiscal year, July, ready-made garment exports increased by 24.5 per cent compared to the same period of the previous fiscal. However, in the second month, August, exports fell by 4.75 per cent compared to the same month of the previous fiscal. Exports of ready-made garments in that month amounted to USD 3.17 billion.

The Export Promotion Bureau (EPB) released updated data on goods export earnings today, Tuesday. It shows that in the recently concluded month of August, Bangladesh exported goods worth USD 3.92 billion in total. This export is 2.93 per cent lower than in August last year, when goods worth USD 4.03 billion were exported.

In the first two months (July and August) of the current 2025–26 fiscal, goods exports amounted to USD 8.69 billion. This is 10.61 per cent higher than in the same period of the previous fiscal.

According to EPB data, ready-made garment exports in the first two months of the current fiscal stood at USD 7.13 billion, showing a growth of 9.63 per cent. However, exports fell by 4.75 per cent in August.

Bangladesh is in a somewhat favourable position regarding reciprocal tariffs in a big market like the United States. Even so, ready-made garment exports from Bangladesh fell last month. Exporters said that negotiations over retaliatory tariffs had been ongoing for several months, which resulted in lower purchase orders from the US. This is why exports were lower last month. However, with the tariff rates finalised, buyer companies have begun discussions to place additional orders from August, and exporters are expecting these extra orders.

An analysis of EPB data shows that in August, exports of leather and leather products, processed agricultural products, non-leather footwear, and furniture fell, in addition to ready-made garments. However, exports of home textiles, jute and jute products, frozen food, plastic products, and engineering goods increased.

In the first two months of the current fiscal, leather and leather products were the second-highest export item after ready-made garments. Exports of these products amounted to USD 2.3 billion, showing a 13.68 per cent increase compared to the same period of the previous fiscal. However, in August alone, exports of leather and leather products fell by nearly 1.5 per cent.

The third-highest export item is processed agricultural products. In July–August, exports of processed agricultural products amounted to USD 1.7 billion, a 3.96 per cent increase compared to the same period last year. However, in August alone, exports of these products fell by 4 per cent.

Home textiles are now the fourth-highest export item. In the first two months of the current fiscal, home textile exports amounted to USD 1.4 billion, showing a growth of 12.68 per cent.