FURNITURE exports have added a new window to our export basket to bring a new thrust to furniture making in the country for the global market. A report published in a national English daily on Monday said, the country can exploit the marketing of the furniture products which are being produced here in state-of-the art fashion and at par with the taste of the international buyers. The very important thing is now to diversify the products based on the demand at various global points. The report said that the private sector is working hard to make bigger gains in the strategic global market places and the government should lend the helping hand to make their entry easier. This is a timely reminder to the nation and we hold the view that Bangladesh must reduce its dependence on apparel exports and things like accelerated exports of software or a steady rise in furniture exports may bring the benefits more than anything else. The nation must take decisive steps in this regard.
Furniture industry is considered a ‘Thrust Sector’, which is now making a growing contribution to the GDP, albeit at below one point so far. This is a labour intensive industry which has the potential to create more jobs and income to further increase the national economy. As per Export Promotion Bureau (EPB) data, the country exported furniture worth $31.41 million in fiscal 2012-13 which is up by 15.73 percent over the previous year. In the domestic market, moreover, it sold items worth around Tk 14,000 crore a year with over 2.5 million people working in the industry as of now.
The production cost of furniture is less in Bangladesh in terms of timber and cost of workers. It is highly competitive with respect to other exporting countries like China or Indonesia. So Bangladesh is in a position to take a good share of the global market. Bangladesh is already exporting furniture to Europe, India and also to Middle Eastern countries. So it may go for more market diversification now while working at the same time on product diversification. We suggest that the Commerce Ministry, Ministry of Industry and EPB can jointly initiate a survey to this effect and work on strategic planning to develop the sector. The principle raw material in this sector is wood for which we mainly depend on imports. So a cutback on tariffs would help import raw materials at lower costs thus expanding both local and export markets.
Training on manufacturing quality furniture may also be upgraded. Lack of an efficient layout and breaks in material flow affects the productivity, lead-time and overall quality of furniture of Bangladesh. The country has several big furniture makers and any capacity development is possible quickly. Government may also ensure available loan facility with low interest to support its accelerated growth.
