Bangladesh's merchandise exports fall 19.78% in March

Bangladesh's merchandise export earnings dropped sharply in March, falling 19.78% year-on-year due to a combination of fewer working days, weakening global demand and domestic production constraints.

According to provisional data from the National Board of Revenue (NBR), the country exported goods worth $3.39 billion in March, down from $4.23 billion in the same month last year.

Export volume stood at around 420 million kilograms.

Exporters attributed the decline partly to the Eid-ul-Fitr holidays which reduced effective working days by 8–10 days, limiting shipments.

However, industry insiders said broader global factors played a more significant role including subdued demand in key Western markets and intensifying price competition.

They noted that retaliatory tariffs in the United States have led to a drop in orders from American buyers.

At the same time, Chinese exporters—redirecting shipments away from the US—are offering lower prices in European markets, putting Bangladeshi products under pressure.

The latest figures also point to a continued slowdown in the current 2025–26 fiscal year.

After posting about 25% growth in July, export performance has weakened almost every month since. In February, earnings stood at $3.50 billion, marking a marginal 0.50% decline year-on-year.

The ready-made garment (RMG) sector, which accounts for more than 80% of the country's export earnings, has been particularly affected, recording consecutive declines for seven months from August to February.

Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), described the situation as a "perfect storm" of global and domestic challenges.

"Orders from the US and the European Union have been declining following the imposition of retaliatory tariffs," he said, adding that ongoing tensions in the Middle East are further dampening prospects for recovery.

He also pointed to domestic bottlenecks, including diesel shortages affecting factory operations, and urged the government to ensure uninterrupted fuel and energy supply to sustain industrial production.

The NBR figures are based on customs data and include actual exports, sample exports and deemed exports (supply of raw materials to export-oriented industries).

The Export Promotion Bureau (EPB) is yet to release its official monthly export data.