Local value addition in RMG declines in FY18

FT ONLINE

Local value addition in the country’s export-oriented Ready-Made Garment (RMG) industry declined marginally in the past fiscal year.

Analysis prepared by the central bank showed that the ratio of value addition in the RMG sector dropped to 74.63 per cent in FY18 from 75.08 per cent in FY17.

Bangladesh Bank estimates the value addition on the basis of raw materials imported by the industry.

In the past fiscal year, the apparel industry owners imported raw materials worth $ 7.76 billion under a back-to-back system.

At the same time, export of RMG stood at $30.61 billion.

Thus, the ratio of raw material imported for the sector stood at 25.37 per cent in the past fiscal year and the rest amount is considered as local value addition.