The readymade garment manufacturers want price hike to remain in business as the production cost has gone up as a result of factory upgradation and also increase in workers’ wages. “Recently, the buyers have become tricky in setting prices of RMG products and introduced cost breakup system,” BGMEA Vice-President Shahidullah Azim told the Dhaka Tribune. They collect prices of raw materials used to make certain products from several manufacturers and set the lower price based on the average cost, said Azim. The new system put manufacturers in tough competition and it should be scrapped, otherwise the garment sector will fall in trouble, which will ultimately put the workers’ jobs at risk, he added. The production cost has gone up by around 12% because of the factory upgradation to make it compliant and also hike in wages by 219% in the last four years, BGMEA President Md Atiqul Islam told the Dhaka Tribune. Before launching the inspection programme to improve safety standards in the RMG sector, the global buyers promised to raise prices of apparel products, but did not do so, rather they took the opportunity to lower the prices, said Atiqul. Prime Minister Sheikh Hasina yesterday requested the foreign buyers to raise the prices of Bangladeshi garment products, according to a UNB report. The PM made the request when Dutch Ambassador to Bangladesh Gerben de Jong paid a farewell call on her at her office. Citing her government steps about the welfare of RMG workers, Sheikh Hasina said the workers’ wages have been hiked by over 200% since 2009. “After the collapse of Rana Plaza building, Bangladesh RMG sector had to spend a lot of money to meet the prescription of global buyers to make the sector compliant,” Abdus Salam Murshedy, president of Exporters Association of Bangladesh (EAB) told the Dhaka Tribune. “We have installed fire doors, sprinklers and been implementing Corrective Action Plans (CAPs) outlined by the Accord and Alliance, but the buyers are still unwilling to increase prices and the prime minister’s call for price hike is a timely and rational steps, said Salam. If prices are not increased, manufacturers might opt for job cut to avert losses, he added. During a visit in mid-June, the Minister for Foreign Trade and Development Cooperation of Netherlands, Lolianne Ploumen, underscored three challenges, including fair price for Bangladeshi RMG products, unauthorised subcontracting and rights to orgainse. According to the study conducted by Mark Anner, associate professor, Penn State University, prices of men and boys cotton trousers exported to the US market declined by 40.89% over the last 14 years. Meanwhile, Bangladesh’s readymade garment exports displayed the poorest performance in six years with 4.1% rise in the just-concluded fiscal year while the country’s overall export growth also slumped to 13-year low. The RMG sector earned $25.49bn in the just-concluded fiscal year compared to $24.49bn in the previous year.
