Bangladesh’s exports to Turkey face uncertainty due to high inflation

Turkey, Bangladesh’s Tk 10,000-crore export market has been shrouded in clouds amid the Russia-Ukraine war as it eroded purchasing power of the Turkish people, a commerce ministry official said.

He said the demand for export products, especially apparels, have fallen because of high inflation in Turkey where people are prioritising their expenses.

Bangladesh Embassy in Turkey’s capital Ankara has expressed its grave concern about accomplishing a $2 billion shipment target this financial year.

The Bangladesh embassy in Ankara recently sent a letter to the senior commerce secretary Tapan Kanti Ghosh asking him to open a commerce wing under the embassy. 

The memo also incorporates some advice for a large campaign to promote Bangladesh’s products in Turkey.

The government has to take initiatives for business development, increase investment and raise trade between these two countries, the letter added.

Ambassador-in-charge Shanaj Gazi cited in the memo said a total 1.6 million people came under the poverty line in Turkey due to Covid-19 pandemic. 

Poverty rate was 10.2 percent in Turkey during 2019 rose to 12.2 percent, currently. 

Besides, the Consumer Price Index rose to 84.45 percent in Turkey which was 14.60 percent two years ago.

Therefore, the common people of Turkey are not interested in buying apparels at this time, the letter said.

A couple of days ago, senior commerce secretary Tapan Kanti Ghosh told Business Insider Bangladesh that there is no possibility of export growth in Turkey until the Russian war on Ukraine ends.

The demand for merchandise in the European Union would definitely increase if inflation rate eases there, he said. 

Turkish Ambassador Mustafa Osman Turan said in a recent interview that raising trade with Bangladesh is a priority of his country. 

“In 2020, the overall trade volume (between Bangladesh and Türkiye) was around $850 million. Now it has passed the $1 billion threshold. We aim to increase it up to $2 billion in a couple of years,” Turan had said.