DHAKA: Bangladesh government is going to redefine export-oriented traditional and non-traditional products to enhance exports.
The move came as the contribution of the traditional products to the export basket came down to 2.74% in the last fiscal year, while the contribution of non-traditional products soar to 97.26%.
Recently, the Prime Minister Office (PMO) in a letter directed the Export Promotion Bureau (EPB) to redefine export-oriented traditional and non-traditional products to expedite export growth, EPB sources said.
Following the instruction, on Sunday the EPB held meeting with the export-oriented stakeholders including Bangladesh Garment Manufacturers and Exporters Association, Bangladesh Textile Mills Association (BTMA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and other sectors to redefine traditional and non-traditional export-oriented products.
In the meeting, the EPB recommended inclusion of RMG and frozen foods in the traditional category, while it also suggested excluding tea from the traditional list.
They argued that the demand for tea has risen sharply and there has been a shortage of supply.
“To specify traditional or non-traditional export-oriented products, we have to consider the growth of that specific items,” said Dr Mirza Azizul Islam, former finance adviser to an election-time caretaker government.
He said the potentiality of the products has to be identified first and the goods need to be selected on the basis of export growth potentiality.
Mirza Aziz suggested new items like electrical, engineering and agro-based products for the export.
“RMG has already come to the traditional category with its present export volume,” he added.
According to EPB, since the Independence of Bangladesh, jute, jute goods (Hessian, Sacking and CBC), leather (crushed and finished) and tea (bulk) are being considered as traditional products.
In 1980s, RMG sector started its journey and gradually emerged as a significant industrial sector of the country, now accounting for over 80% export earnings.
Currently, the contribution of textile sector to the country’s export has marked steep rise.
In last financial year, Bangladesh earned $25.39bn exporting RMG products including oven, knitwear, home textile, specialised textile, fabrics and yarn, which was 84.12% of the total export.
In the fiscal year 1976-77, the contributions of traditional and non-traditional products were 89.52% and 10.48% respectively.
In the FY2013-14, the contribution of traditional products came down to 2.74%, while the contribution of non-traditional products soar to 97.26%.
In the Sixth Five-Year Plan, the government has given focus on diversification of products and market to expand the global market of Bangladesh exports.
