"Export had the highest ever surge in fiscal 2005-06, fetching around $1.8 billion more than in the previous year, " said a source in the Export Promotion Bureau (EPB).

Export earning also exceeded the target of $10.16 billion last fiscal year and was the highest so far, according to preliminary EPB estimates.

In fiscal 2004-05, the country earned $8.65 billion from export.

However, the government drew flak from exporters for what they said was setting an ambitious target in the quota free era when Bangladesh's largest export earner readymade garment (RMG) sector was stumbling due to stiff competition with China, India and other rivals. This sector earns about 75 percent of the total export earning.

But safeguard measures against Chinese exports and increased investment helped local entrepreneurs to export more to US and EU markets, exporters explained.

"Safeguard measures imposed by the US against Chinese products until 2008 have contributed to raising Bangladesh's exports there," said Annisul Huq, former president of Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

Besides, investment in the RMG sector increased substantially resulting in higher export, he explained.

Local exporters however pointed out that prices of products plummeted substantially in the global market, and they had to sell more goods last fiscal year to get the same amount they earned a year back.

According to an EPB analysis, unit price of Bangladeshi woven products dipped by nearly four per cent while knitwear saw a 1.45 per cent fall.

"Quota phase-out has badly affected the RMG sector, and cutting and manufacturing (CM) charge plummeted by as high as 50 percent in just one year," said Annisul Huq.

Citing an example, he said factory owners received CM charge ranging between $12 and $14 for a dozen pants from US buyers last year but they are now getting $6 to $7 for it.

Export volume of woven products rose by 18 per cent but earning from it by 13 per cent while the volume of knitwear export shot up by 36 per cent but earning from it by 34 per cent during July-May period of fiscal 2005-06.

The US remained the single largest destination for Bangladeshi goods fetching around $3 billion in 2005-06. Around 52 per cent of the total earning came from the EU countries.

Apart from RMG, export of some other items including textile fabrics, home textiles, petroleum byproducts, frozen food, leather and bicycle helped the country earn more last year.

"Backward linkage industries have helped knitwear grow at a faster rate and it will continue to grow for at least a couple of years," said one exporter. "We need to develop our own backward linkage units to add local value and survive in the global market by reducing lead-time."

Moreover, demands for Bangladeshi traditional export items like jute goods and raw jute are again on the rise, and the country earned more than $500 million from export of those last fiscal year.