Bangladesh eyes $6 bln knitwear exports in 2006/07

DHAKA, Apr 13 (Reuters) Bangladesh could raise its exports of knitted garments to .0 billion in fiscal 2006/07, nearly 60 percent higher than this year's likely outcome, the country's knitwear industry body said on Thursday.

''It does not look impossible for us to achieve the target,'' Mohammad Fazlul Hoque, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Reuters in an interview.

Exports of knitwear including sweaters, T-shirts and socks to major markets have jumped since the end of import quotas under world trade rules at the beginning of 2005.

Knitwear fetched nearly DHAKA, Apr 13 (Reuters) Bangladesh could raise its exports of knitted garments to $6.0 billion in fiscal 2006/07, nearly 60 percent higher than this year's likely outcome, the country's knitwear industry body said on Thursday.

''It does not look impossible for us to achieve the target,'' Mohammad Fazlul Hoque, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), told Reuters in an interview.

Exports of knitwear including sweaters, T-shirts and socks to major markets have jumped since the end of import quotas under world trade rules at the beginning of 2005.

Knitwear fetched nearly $2.4 billion in export revenue in July-February of fiscal 2005/06, up more than 30 percent from the same period of the previous fiscal year.

Bangladesh's fiscal year runs from July to June.

''We are enjoying an export boom in the US market in the quota-free era. That has opened up a whole new world of trade,'' Fazlul said.

Exports to the US market have more than doubled.

The BKMEA is organising fairs in overseas markets to attract even more buyers, including a three-day event in Germany from June 6. Germany is already the largest importer of knitwear from Bangladesh, with sales of $668 million in 2004-05.

Fazlul appealed for more help from the government, which has already launched a quality support programme worth nearly 1.0 billion taka ($14.4 million) to ensure that exports are up to international quality standards.

''Globalisation has posed new challenges to us. So we have no option but to raise the quality of our products,'' he said.

''The sector also needs more cash incentives to sustain itself in the international market,'' he added.

The government subsidises exports at five percent of their export value, but Fazlul said that should be raised to 15 percent. In India, one of Bangladesh's main competitors, it was 25 percent, he said.

Fazlul also said that Bangladesh needed to improve workplace conditions.

''To remain in focus in the export sector we have to ensure social compliance, which is now one of the major criteria for international buyers,'' the BKMEA leader said.

''We will take steps to put out of business companies that flout safety provisions, which is a major concern for the buyers.'' In February alone, two factory accidents claimed at least 73 lives and injured over 150 people, officials said.

Textiles are Bangladesh's biggest export, earning the country more than $6 billion annually, with woven goods ahead of knitwear in first place. The sector employs nearly 2 million people.

REUTERS SBJ SP1342 .4 billion in export revenue in July-February of fiscal 2005/06, up more than 30 percent from the same period of the previous fiscal year.

Bangladesh's fiscal year runs from July to June.

''We are enjoying an export boom in the US market in the quota-free era. That has opened up a whole new world of trade,'' Fazlul said.

Exports to the US market have more than doubled.

The BKMEA is organising fairs in overseas markets to attract even more buyers, including a three-day event in Germany from June 6. Germany is already the largest importer of knitwear from Bangladesh, with sales of 8 million in 2004-05.

Fazlul appealed for more help from the government, which has already launched a quality support programme worth nearly 1.0 billion taka (.4 million) to ensure that exports are up to international quality standards.

''Globalisation has posed new challenges to us. So we have no option but to raise the quality of our products,'' he said.

''The sector also needs more cash incentives to sustain itself in the international market,'' he added.

The government subsidises exports at five percent of their export value, but Fazlul said that should be raised to 15 percent. In India, one of Bangladesh's main competitors, it was 25 percent, he said.

Fazlul also said that Bangladesh needed to improve workplace conditions.

''To remain in focus in the export sector we have to ensure social compliance, which is now one of the major criteria for international buyers,'' the BKMEA leader said.

''We will take steps to put out of business companies that flout safety provisions, which is a major concern for the buyers.'' In February alone, two factory accidents claimed at least 73 lives and injured over 150 people, officials said.

Textiles are Bangladesh's biggest export, earning the country more than billion annually, with woven goods ahead of knitwear in first place. The sector employs nearly 2 million people.

REUTERS SBJ SP1342