Bangladesh's readymade-garment sector earned more from each dollar of exports in the last fiscal year (FY 2025-26), as a sharp decline in raw- material import costs helped offset a modest fall in gross apparel exports.
The improvement pushed the sector's value-retention rate above 62 per cent, its highest level in recent years.
According to data compiled from Bangladesh Bank and Export Promotion Bureau (EPB) statistics, net RMG export earnings reached US$24.22 billion during the July-June period of FY26, up from $23.22 billion in the corresponding period of FY25.
Although gross apparel exports registered a slight decline of 0.96 per cent, falling from $39.35 billion in FY25 to $38.97 billion in FY26, the industry achieved a higher net value retention rate.
Total raw material import expenditure fell by 8.54 per cent to $14.75 billion in FY26, compared with $16.13 billion spent in FY25.
Consequently, the average value retention rate of the RMG sector improved by 3.14 percentage points, reaching 62.15 per cent of overall RMG exports in FY26, compared with 59.01 per cent in the preceding fiscal year.
The central bank considered the main heading value of the components -- raw cotton, synthetic and viscose fibre, synthetic and mixed yarn, cotton yarn, textile fabrics, and accessories for garments -- rather than only raw materials imported through back-to-back LCs, according to its latest quarterly report.
Value addition in Bangladesh's RMG sector that remained almost static between 60 per cent and 64 per cent from FY13 to FY19 has fluctuated in recent years.
Data analysis shows a fluctuating trend, with the rate falling to 56.49 per cent in FY20 before rising to 59.13 per cent in FY21. It dipped again to 54.38 per cent in FY22 before increasing to 58.11 per cent and 60.13 per cent in FY23 and FY24 respectively.
Exporters termed the growth 'good', attributing the increase in net retention to improved local backward-linkage efficiency, optimised raw material sourcing and moderation in global yarn and fabric import prices throughout FY26.
Talking to the FE, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Senior Vice-President Inamul Haq Khan said a reduction in import expenditure does not necessarily mean that something positive is happening.
"Import is one indicator of exports," he said, explaining that stronger export performance should also be accompanied by higher imports where necessary.
The data does not reflect the rising cost of doing business and production, which has increased mainly because of the gas crisis, among other factors, he said, adding that although gas supply has improved to some extent, it has yet to return to its usual level.
The BGMEA leader said the recent gas crisis had damaged the country's image, while exporters were now primarily concerned with ensuring timely shipments to retain their existing buyers despite rising production costs.
He, however, said the results were mixed throughout the fiscal year when quarterly performance was taken into consideration.
August and September are lean months, and orders from the European Union are showing slight improvement, he said, expecting the usual flow of work orders from October onwards, provided a smooth supply of gas is ensured to sustain production and orders.
Asked about the figures, former Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) President Fazlul Hoque termed the growth in net export earnings 'partially good' amid rising production costs resulting from a number of internal factors, including higher utility costs and increased wages.
He, however, said higher net earnings meant exporters were manufacturing value-added items, securing better prices and improving efficiency.
He, also the managing director of Plummy Fashions Ltd, said the efficient use of materials had increased, helping reduce the rate of wastage.
