The prices of Bangladesh-produced cotton trousers have declined by over 40 per cent in the US market since 2000, according to an American researcher.
Dr Mark Anner, an associate professor at Penn State University, came across this as part of his research titled ‘Prices and Development in the Global Apparel Industry: Bangladesh in Comparative Perspective’.
Revealing the findings of his research Thursday at the BGMEA conference room, Dr Anner said if constantly improved efficiency on the part of the supplier results in constantly reduced prices, then the gains in efficiency will be captured at the top of the supply chain.
Bangladesh is one of the top cotton trouser-exporting countries to the USA along with China, Mexico, Vietnam, Pakistan and Indonesia.
Dr Anner stressed the need for conducting further research on cost breakdown of buyers to assess the US market.
Associate Professor of University of Colorado Jennifer Bair, and fellow of Penn State University Jeremy Blasi also contributed to the research Dr Anner presented at the discussion yesterday.
Speaking on the occasion, BGMEA president M Atiqul Islam said the government has proposed source tax on RMG sector in its upcoming budget of fiscal 2015-16, which will force the industry into trouble.
He said if source tax is imposed amid the price decline of RMG products in US market, it will be suicidal for the RMG industry, in which at least 4 million workers, mostly women, are currently working.
The BGMEA president also said the growth rate of RMG export is less than 3 per cent in Bangladesh while the rate has reached to double digit in the competitor countries like in Vietnam, India or even Pakistan.
Shafiul Islam Mohiuddin, senior first vice president of FBCCI, urged the government to reconsider the decision of imposing source tax for the long term benefit of the RMG sector.
Kandakar Golam Moazzem, additional research director of Centre for Policy Dialogue, said the governments of both buyer and seller countries should monitor the businessmen whether they are doing business in a right way or not.
Ahsan H Mansur, executive director of the Policy Research Institute of Bangladesh, said the RMG producing countries can make a coalition to stop the price discrimination.
