Local value addition in RMG drops in first three quarters of FY 17

Published in the Financial Express on 30, May 2017

Local value addition in the export-oriented Ready-Made Garment (RMG) industry in Bangladesh dropped in the first three quarters of the current fiscal year.

A quarterly analysis of the central bank estimated that local value addition in RMG dropped to 73.67 per cent in July-March period of the current fiscal year (FY17).

The value addition was 75.35 per cent in the past fiscal year.

Bangladesh Bank has estimated the local value addition on the basis of back to back raw material imports.

It showed that the value of back to back raw material import stood at $5.34 billion against the total RMG export worth $20.92 billion in July-March period of the current fiscal year.

Thus, raw materials import shared 26.33 per cent of the total value of RMG import. It means, local value addition is estimated at 73.67 per cent.