Bogura’s export earnings decline by 81% in 7 months of 2024

Bogura's export earnings have dropped by 81% in the first seven months of this year compared to the same period last year, according to data from the Bogura Chamber of Commerce and Industry.

In 2023, the district's export earnings had already decreased by over 40% from 2022, reflecting a downward trend that has now accelerated.

Traders cite political and economic instability as the main reasons behind the export decline.

The number of product categories exported from Bogura has also significantly reduced.

While 12 types of products were exported in 2022, this number fell to seven in 2023 and has now dwindled to just three, including rice bran oil, jute products, and water pumps.

From January to July 2024, Bogura exported products worth $3.31 million, compared to $30.09 million in 2023.

Last year, Bogura's average monthly export value was $25.08 million, which has now dropped to $551,455 per month.

According to Md Sairul Islam, director of the Bogura Chamber of Commerce and Industry, the quality of Bogura's products has not declined.

"However, the unstable political situation in the country has created an unfavourable environment for business. Additionally, many businesses are now obtaining Product of Origin certificates from Dhaka, which has contributed to the decline in exports from Bogura," he said.

Sairul Islam expressed hope that exports will increase once the political situation stabilises.

Exporters in Bogura have pointed to global political instability last year and the ongoing national political crisis this year as significant factors affecting their business.

Businessmen have also cited the global economic slowdown, the Ukraine-Russia war, and the dollar crisis as contributing factors. The overall decline in both exports and imports has made it difficult for the district to recover its export earnings.

In previous years, Bogura exported a wider variety of products, including well filters, air filters, vegetables, soybean products, Saudi royal clothing, garments, net caps, handicrafts, digital scales, tube wells, Nakshi Kantha, Butter catfish, and Barbel fish.

However, the list of exported products has been shrinking, reflecting the broader challenges facing the district's export sector.

Hasan Jute Mill has been the top exporter from Bogura this year, exporting jute products worth $1.22 million by July. In 2023, the company exported over $16.69 million worth of jute products, topping the export list. The company also led the export list in 2022.

However, the managing director of Hasan Jute Mill, ATM Shafiqul Hasan Jewel, noted that the price of raw jute, the primary product of the mill, was very low last year.

He also mentioned that a significant amount of raw jute is being exported from the country, leading to a shortage of raw materials for their products. This, coupled with the political instability, has impacted their production and export capacity.

Rice bran oil, exported by Bogura Multi Oil Mills Ltd, is the second most exported product from the district this year, with exports worth $1.04 million.

Majumdar Products Limited, once a top exporter of rice bran from Bogura in 2020, has not been on the export list since last year.

The company's managing director, Chitta Majumdar, explained that earlier, rice bran was exported to India on a large scale. However, exports have decreased as the company is now supplying oil to TCB domestically.

Additionally, the price of rice bran oil in India has declined, and the economic situation in Sri Lanka has deterred the company from exporting there.

Subhas Prasad Kanu, managing director of North Bengal Golden Jute Mill, mentioned that the political crises in 2024 led to missed foreign orders, slowing down the pace of exports. He expressed hope that the situation will normalise soon.

Tamim Agro Industries Limited, which was the top exporter from Bogura in 2021, has moved to the third position this year, exporting goods worth $380,000 from January to July.

In previous years, products from Bogura were exported to various countries in the Middle East, the United States, Sri Lanka, Germany, China, and the United Kingdom.

However, since last year, Bogura's products have only been exported to India. For example, in 2022, air and well filters worth $11,250 made in Bogura were exported to the United Kingdom, but this product is no longer on the Bogura chamber's export list.

Irrigation pumps, once a sought-after export product from Bogura, have also seen a decline in demand. Exporters recall that the district's journey into the foreign market began around 2000 with the export of irrigation pumps, but this demand has decreased over time.

The Bogura Chamber of Commerce and Industry reported that goods worth $57.2 million were exported from Bogura in 2022, a decrease from $58.3 million in 2021.

This decline reflects the broader challenges the district faces in maintaining its export earnings amid global and local instability.

In 2020, Bogura's exports were valued at $52.62 million, while in 2019, the district earned $72.33 million from exports.

The trend has been downward since 2018 when the district exported goods worth $34 million, further exacerbated by the current political and economic challenges.