Int’l buyers urged to be more sensitive over RMG price
DHAKA, – Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan today called upon the international buyers to be more sensitive over the issue of fixing RMG price and thus fixing the just price in line with the demand of the suppliers as well as considering the cost hike in cotton, yarn, other raw materials and in freight.
“We need most the support from our buyers to keep alive in this adverse environment and if the supplies remain alive, then the global supply chain will also remain intact,” Faruque said while addressing a press conference held at a city hotel to brief the media about the outcomes of the BGMEA delegation’s recent visit to Scotland, England and Belgium.
The BGMEA delegation participated at the COP26 in Scotland. Other BGMEA leaders were also present at the press conference. Urging the RMG entrepreneurs to be more aware over the issue of fixing RMG price, Faruque suggested the RMG factory owners not to negotiate orders by any means less than the usual production cost. The BGMEA President informed that the 37th IAF World Fashion Convention will be held in Dhaka in November next year marking the 50th founding anniversary of the IAF.
The convention will be organized jointly by the IAF and the BGMEA. He said that marking the Convention, the BGMEA is planning to hold a “Made in Bangladesh Week” under which there will be Dhaka Apparel Summit, Fashion Festival, Exposition and some award functions. Answering to a question, Faruque said the “Made in Bangladesh Week” is likely to be held in the 3rd week of November next year with Prime Minister Sheikh Hasina expected to inaugurate the event.
He said that at that event, the BGMEA would highlight the capacity, compliance, good stories and practices of the country’s RMG industry. Referring to the recent 23 percent diesel price hike, Faruque said that the cost in transportation, power production through generators, other raw materials and services has been raised for which the overall RMG production cost has been increased by 4 to 5 percent.
The BGMEA President in this regard requested the government to reconsider the issue of fuel price with due attention as such hike is expected to raise further the inflation rate and also the price of essentials. Replying to a question, he said that they are now getting orders from the buyers although those were less over the last two years due to the impact of the COVID-19 pandemic. “We’ve kept our buyers during that period despite incurring losses.
We kept our factories open during that time and now the buyers are recognizing our efforts.” He said although the RMG owners are now getting higher price of their produces, but that is not enough as per the increased price of raw materials. “We’re trying our best to increase the price of RMG products and also suggest our entrepreneurs not to take orders with lesser price. We’re trying to avail sustainable orders as we’re also working to maintain compliance and energy efficiency.
We seek support from all to ensure sustainability of the RMG industry.” Replying to another question, Faruque said the international buyers are not giving additional price for products made from green factories.
“But, we’re hoping to get higher price for the products made from green factories,” The BGMEA President said that they are trying to get maximum transition period from the European Union as the industry insiders are hopeful of attaining higher capabilities by 2026. He told a questioner that the biometric database has been in place in the RMG sector since 2013 while such database is in operation in almost all the factories with the enlistment of more than 40 lakh workers. Faruque said that they are pursuing apparel diplomacy while they also want export-friendly currency rate.
Highlighting the current status of the industry, he said that the yarn price has increased around 60 percent over the last one year, container freight increased by 350 to 500 percent, cost of dice and chemicals increased by 40 percent.
Besides, the annual wages increased by 7.5 percent at the beginning of this year alongside 13 percent power price hike which depicts that the sector is passing through a challenging time. The BGMEA President also opined that this RMG sector has been playing a silent and very important role in women’s empowerment, poverty alleviation, attaining SDGs and sustainable growth. “Hopefully, such contribution will continue in the future also.”