Business

Bangladesh Apparel Sector’s Value Addition Hits Record Low In FY ’22

Owing to increase in prices of raw materials on the global market and worldwide supply chain disruptions, value addition in Bangladesh’s readymade garment products in financial year 2021-22, dropped to a record low of 54.37%. This is as per Bangladesh Bank report titled ‘Quarterly Review on RMG: April-June, FY22’, according to which value addition dropped to 54.37% in FY ’22 from 59% in FY ’21. The central bank data further showed value addition had started to decline since the financial year 2019-20 – the value addition in FY ’20 decreased to 56.84% from 64.32% in FY ’19 – even if the value addition in RMG products slightly increased in FY ’21 before showing a downward trend in the first half of FY ’22 (the value addition dropped to 55.80 per cent in the July-December period in 2021-22).