Knitwear exports reached $5.532 billion in the immediate past fiscal year (2007-08), registering a 21.24 percent growth and exceeding the target of $5.465 billion, according to the Export Promotion Bureau (EPB) data.

The sector people said sharp rebound in knitwear exports followed by peaceful political environment, currency appreciation against US dollar by major competing countries and aggressive marketing drive helped exceed export targets at the end of the fiscal.

In June exports of knitwear reached $603 million, which is 24 percent up.

Knitwear is the country's largest single export item and together with woven products accounts for more than 75 percent of the country's export earnings.

The surge comes following a relatively weak FY 2006-07 when readymade garment (RMG) exports failed to reach targets partly as a result of prolonged periods of political and industrial unrest.

Political calm and reduction in labour unrest helped pick up exports of the item in September, an exporter said.

Another manufacturer pointed to the success in marketing Bangladeshi products to US buyers, also giving credit to the exploration of new markets such as Poland, Russia and Uzbekistan.

Woven product exports reached $5.168 billion in FY 2007-08.

President of Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Fazlul Hoque said country's RMG exports would face more competition next year as China raised tax rebate on textile and garments.

President of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Anwar-Ul-Alam Chowdhury Parvez said buyers were coming back to Bangladesh to import low priced basic garment items.

“Another thing is that there was no lean period of sweater production for Bangladesh last year. Generally December-March is a lean period, but this year there was no such lean period due to the lengthy winter season,” Parvez said.