Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged apparel buyers to allow them to buy fabrics and accessories from multiple sources instead of one as imports from a particular supplier often undermines competition.
BGMEA president Faruque Hassan made this request to all brands, retailers and buyer’s representatives in a letter sent on Monday.
“Our observation is that in many cases buyers nominate the source of fabrics and accessories import. In most of the cases, the nomination comes as a single source with no option. You would agree that in principle it somehow distorts the business environment and competition, which otherwise would have helped to ensure better quality, better cost and flexibility should the manufacturers had options of multiple suppliers’ nomination” read BGMEA president’s letter.
“So, I would humbly request you to kindly consider this request to nominate multiple suppliers for one particular input for which we are not competitive enough and to be imported, so that we have the option to negotiate and also check the quality” the letter added.
Talking with The Business Standard, BGMEA President Faruque Hassan said Bangladesh has a strong local backward linkage industry, which is capable of meeting 100% demand of all types of accessories, as well as various types of fabrics.
BGMEA asked buyers to source quality raw materials from the local industry, which will help reduce lead time, said Faruque Hassan.
If any special accessories or fabrics are not available in local industries, that should be imported, said Faruque Hassan, adding, in case of foreign nomination it should be multiple suppliers instead of single supplier nomination.
“We just concluded the year 2022, our readymade garment (RMG) industry has set a new landmark of US$ 45.70 billion worth of export in a single year. The overall export of Bangladesh has also reached a new height with around US$ 55 billion export,” said the BGMEA chief in his letter.
“The indomitable spirit of the entrepreneurs, hard work and dedication of the workers, and most importantly the all-out support from you (buyers) has enabled us to fetch these accomplishments. I extend my sincere gratitude to you for being with us in good and bad times, and for your trust in Bangladesh,” added Faruque Hassan.
