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RMG leaders warn Trump’s tariffs could be a severe setback for Bangladesh’s US $ 10 billion market in US

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RMG Bangladesh
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Bangladesh’s readymade garment (RMG) industry is preparing for major disruptions following the United States’ announcement of a 37 per cent reciprocal tariff on Bangladeshi goods, a decision that industry leaders have termed a “devastating blow.” As a result, the total duty on RMG cotton-blend products will now increase to 54 per cent (37 per cent + 17 per cent), raising serious concerns about the country’s competitiveness in the US market, which represents a US $ 10 billion opportunity for Bangladesh.

Shovon Islam, Managing Director of Sparrow Group, highlighted that Bangladesh is among those nations facing the highest tariffs, now nearly on par with China’s rates for cotton products. With India and other competitors also experiencing tariff increases, Bangladesh’s new tariff rate exceeds India’s, potentially making it less attractive to buyers.

The tariff announcement came during a White House event where President Donald Trump outlined reciprocal measures in response to tariffs imposed on US goods by other countries. Trump emphasised that the new duties aim to address the trade deficit, which has become a focal point of his administration’s trade policy.

Industry leaders have noted a shift in buyer preferences, with requests for production moving to countries like Jordan, Egypt, and Kenya, where tariff rates are significantly lower. For instance, cotton products from Jordan are subject to only a 20 per cent duty, reinforcing its status as a more appealing sourcing destination compared to Bangladesh.

The immediate consequences of the tariff hike include potential shipment disruptions and delays in payments, echoing challenges faced during the COVID-19 pandemic. Md M Mohiuddin Chowdhury, a director at Clifton Fashion Ltd and a member of the BGMEA administrative committee, suggested that diplomatic engagement could pave the way for duty-free trade with the US, which would be transformative for the industry.

As Bangladesh navigates these challenges, industry leaders recommend a two-pronged strategy: offering zero-duty access for US agricultural products and increasing imports from the US to help balance the trade deficit. This approach may alleviate some trade tensions and encourage direct sourcing from the US rather than alternative markets.

Concerns are mounting over the implications of these tariffs, particularly as Bangladesh prepares for its transition from Least Developed Country (LDC) status. Shams Mahmud, managing director of Shasha Denim Ltd, emphasized that the new tariffs complicate this transition, raising questions about the country’s trade policies and competitive position.

With the RMG sector facing unprecedented challenges, industry leaders are calling for immediate government action to protect Bangladesh’s vital trade relationships and ensure the sustainability of its garment industry.

Lower import tariffs on US products to stay competitive: exporters  

POST BY
RMG Bangladesh
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Bangladesh should either remove or significantly reduce tariffs on its imports from the United States to remain competitive against its rivals, two apparel exporters said today.  

The country imports agricultural commodities, construction materials, and other goods from the US. Reducing tariffs to zero could help ensure lower duties on Bangladesh’s exports to the American market, said Shams Mahmud, managing director of Shasha Denims, a leading exporter.

His remarks come as Bangladesh is set to face a 37 percent tariff on its exports to the world’s largest economy.  

With the new US tariff structure under the Trump administration, apparel exports from India and Pakistan may become cheaper than those from Bangladesh, as these countries have reduced duties on US products, he said.  

“To stay competitive in the US market, we need to bring down import duties on American products to zero,” Mahmud added.

“The US tariffs pose significant challenges for Bangladesh. Higher export tariffs than competitors and uncertainty over industry relocation from China threaten trade. Bangladesh’s reliance on import taxes for revenue now clashes with the need to ease duties in response.”

As the country nears LDC graduation, the transition appears uncertain, requiring reassessment. The RMG sector, heavily impacted by US measures, may strain macroeconomic stability. “The overall stability of Bangladesh will now be in stress,” Mahmud noted.  

Mohiuddin Rubel, additional managing director of Denim Expert Ltd, noted that Bangladesh is not the only country affected. 

“All 60 countries facing these tariffs will feel the impact,” he said.  

However, tariffs on Bangladesh’s competitors have also risen. For instance, China will face a 34 percent tariff, Vietnam 46 percent, Indonesia 32 percent, and India 26 percent, he said.  

“Undoubtedly, all will suffer,” he said, adding that the cost of goods in the US will rise, leading to higher inflation.  

Rubel also noted that exports from the US’s neighbouring countries, such as Honduras, could increase as a result.  

“Bangladesh should engage in negotiations with the US to bring tariffs down to a minimum level so that we can compete effectively with our rivals,” he said.

“We should act immediately.”

How does Trump’s tariffs affect Bangladesh?

POST BY
RMG Bangladesh
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US President Donald Trump announced reciprocal tariff; as a result, Bangladeshi products, like those of any country that imposes tariffs on American products, will be more expensive in the American market from now on.

According to Trump’s announcement, tariffs on Bangladeshi goods have been increased to 37%. 

Bangladeshi goods previously had an average tariff of 15% so far, but the new tariffs have now more than doubled.

The United States is one of Bangladesh’s two major export markets. A large portion of Bangladesh’s main export product, readymade garment (RMG), is exported to the country.

Bangladesh’s annual exports to the United States are worth about $8.4 billion, mainly RMG. Last year, ready-made garment exports to the United States stood at $7.34 billion.

The average tariff on American products is 74%. The Trump administration applied a 50% discount on this rate and imposed a tariff of 37% for Bangladesh.

Economists and businesses highlight that Bangladesh could negotiate because it is the fifth-largest market for US cotton exports, and there is zero tariff on cotton imports.

Bangladesh also imports scrap from the US at a 4% tariff. However, there is a 5% tariff on butane import (a key ingredient to produce LPG), zero tariff on soybeans and cotton.

Impact

A shirt of made for a western brand in Bangladesh, used to be sold in US stores for $10. That brand may be buying that shirt from a Bangladeshi garment company at a unit price (or purchase price) of $5.

The tariff on that $5 shirt used to be $0.75, but now it will be $2.60. So that company will have to pay $1.85 more than before.

As a result, the price of that $10 shirt will be increased by about $1.85 more.

Some are of the opinion that the RMG industry will not be affected as much because the tariffs on Vietnam (46%), China (34%) and Cambodia (47%) will be higher than Bangladesh.

Among the other competitors in Bangladesh’s ready-made garment sector, 10% tariffs have been imposed on Turkey, 27% on India, 30% on Pakistan, 44% on Sri Lanka.

Effect on economy

Bangladesh mainly exports medium and low-priced products. The price of these products in the US market is between $20 and $60. On the other hand, Vietnam, China or even India are now exporting high-priced clothing.

As a result, experts say it can be assumed that Bangladesh will not be affected as much as they will be affected.

According to Mustafizur Rahman, a distinguished fellow at the Centre for Policy Dialogue (CPD): “Comparable tariffs have been imposed on Bangladesh’s rival nations, some even at higher rates, so it is unlikely that the new US tariffs will significantly alter market competition.”

This, in turn, could reduce demand in the US market, while a global trade war may further shrink demand worldwide, negatively affecting Bangladesh’s exports, he added.

According to Zahid Hussain, former lead economist at the World Bank’s Dhaka Office: “There is no question that the United States’ new tariff policy would hurt Bangladesh’s exports, but this effect will be hit on by a drop of demand in the US economy.”

Inflation

This reciprocal tariff decision could lead to higher inflation in the US and a potential slowdown in its economic growth, economists said.

Business insiders explained that buyers bear the cost of duties, and if US buyers find that the added tariff increases the product price beyond their market threshold, they will seek alternative sourcing to minimize costs.

BGMEA Vice-President Rakibul Alam Chowdhury told the media: “Rising costs of manufacturing—driven by wage hikes and soaring inflation—are making it increasingly difficult for Bangladeshi manufacturers to stay competitive.” 

Economists emphasized boosting Bangladesh’s productivity and engaging in negotiations with the US.

Mustafiz said: “The US has indicated special benefits for countries using American commodities in their exports. Since Bangladesh uses US cotton to manufacture apparel for export, he suggested that this issue be raised in Trade and Investment Cooperation Forum Agreement (Ticfa) talks.”

Zahid also suggested: “Bangladesh should now engage in negotiations. It is essential to discuss with the US whether the data and calculations behind the 74% tariff on US exports to Bangladesh are accurate. 

At the same time, the government should inform the US about any reform initiatives it has undertaken regarding the indirect tariff factors that the US has considered in its decision.”

Exporters suggest that now Bangladesh should reduce the current tariff rate on US goods from 74% to 30%. This will result in a US tariff of 15% again.

Looking at the net of Bangladesh’s imports from the US, exports from Bangladesh to the US, and global competitiveness, experts hope people will see that the country will benefit in this process.

However, the Bangladesh government is already reviewing its tariffs on products imported from the United States (US), said Chief Adviser’s Press Secretary Shafiqul Alam on Thursday.

In his verified Facebook account, he wrote: “The National Board of Revenue is identifying options to rationalize tariffs expeditiously, which is necessary to address the matter.”

RMG leaders say Trump’s tariff devastating blow for Bangladesh’s $10b US market, competitors to gain

POST BY
RMG Bangladesh
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Bangladesh’s readymade garment (RMG) industry will be seriously impacted by the new US tariffs, with industry leaders calling it a “bolt from the blue” that could disrupt trade and reduce the country’s competitiveness in the American market.

Talking to The Business Standard today (3 April), Sparrow Group Managing Director Shovon Islam noted that the 37% increase is an additional tariff, meaning the total duty on RMG cotton-blend products will now stand at 54% (37% + 17%).

“Bangladesh is among the countries hit with one of the highest tariffs,” he said, pointing out that after this increase, Bangladesh’s tariff rate will be almost equivalent to that of China’s cotton products.  

While India and other competitors have also faced tariff hikes, Bangladesh’s tariff rate will now be higher than India’s, making it less attractive for buyers, he said.

Earlier today, US President Donald Trump announced that the US is imposing reciprocal tariffs to match duties placed on US goods by other countries.

During an event at the White House Rose Garden, Trump displayed a poster listing reciprocal tariffs, which included a 37% duty on Bangladeshi products as a response to 74% duties imposed on goods imported from the US.  

Trump also announced a 10% baseline tariff on all imports and higher duties on some of the country’s biggest trading partners.

In response to Trump’s announcement, the interim government has said it is currently reviewing the tariffs on US imports.

“The National Board of Revenue is identifying options to rationalise tariffs expeditiously, which is necessary to address the matter,” Chief Adviser’s Press Secretary Shafiqul Alam said in a statement posted on Facebook this morning.

New sourcing alternatives  

Shovon, a former director of BGMEA, stressed that buyers are already shifting to Jordan, Egypt, and Kenya as alternative sourcing destinations.

“We are experienced in producing MMF [man-made fibre] products, but after the tariff hike proposal, we received requests from buyers to produce cotton-based products in Jordan, as their tariff rates remain lower than Bangladesh’s,” he said.  

The US has imposed only a 20% duty on cotton product imports from Jordan, making it a more attractive sourcing hub than Bangladesh.

Shovon warned that the immediate impact of the tariff hike would include disruptions in goods shipments and potential delays in payments. In some cases, payments may even be withheld, similar to what happened during the Covid-19 pandemic.  

‘If govt eliminates duties, engages in diplomatic efforts to lift US tariff, Bangladesh could establish duty-free trade ties’

If the government eliminates its duties and engages in diplomatic efforts to lift the US tariff, Bangladesh could establish a duty-free trade relationship, said Md M Mohiuddin Chowdhury, a member of the BGMEA administrative committee and Director of Clifton Fashion Ltd.

“This would be a game-changer,” he said. 

The BGMEA has already raised the issue with the chief adviser, and a plan is being developed, and that the government is expected to take steps soon to secure duty-free access to the US market, he claimed.

He also stated that the Bangladesh garment industry will face immediate setbacks due to a new 37% tariff imposed by US President Donald Trump. 

This tariff, he said, will lead to the loss of several work orders currently in the pipeline. However, he remains optimistic, adding, “There’s a significant opportunity for duty-free trade with the US, which could usher in a new era for us.”

Explaining the tariff, Chowdhury described it as a “reciprocal measure”—a response to Bangladesh’s 74% duty on imported American goods. “The US has now imposed a 37% tariff in return,” he said. 

He pointed out that Bangladesh imports only a small volume of machinery for development and food grains to support its population. 

What should Bangladesh do?

To mitigate the impact of the tariff hike, industry leaders have suggested that Bangladesh should take a two-pronged approach — first, by offering zero-duty access for US agricultural products, including cotton, and second, by increasing imports from the US.

Allowing duty-free access to US agro products would encourage direct purchases from the US instead of Brazil and other countries, potentially easing trade tensions. Additionally, increasing imports of military equipment and ammunition could help balance the trade deficit.

Shovon noted that Trump has been advocating for such tariffs since 1988 as part of his efforts to reduce trade deficits with business partners.

Meanwhile, Sri Lanka has already proposed zero duty for all US imports, and India is also considering further tariff reductions.

In summary, he said the new tariffs will lead to a major shift in sourcing. “Favored destinations will Egypt, Jordan, Kenya, and Turkey.”

“Orders will stop moving from China to Bangladesh completely. Actually, some orders will move back to China as there is no duty difference between Bangladesh and China. Sweater and Jacket manufacturing will be greatly impacted,” he said.

“It was still too early to call, but the impact will be devastating for Bangladesh, Vietnam, Cambodia and Sri Lanka,” he added.

Trump’s tariff calculations questioned

Syed M Tanvir, managing director of Pacific Jeans Ltd, told TBS that the tariff formula or numbers used by the Trump administration do not necessarily reflect the actual rates Bangladesh charges.

“Trump’s team derived these figures by factoring in the trade deficit and export values, not just existing tariff rates,” he said.  

While Trump called it “reciprocal”, Tanvir pointed out that it is not based on the actual tariff Bangladesh imposes, but rather a formula developed by his economists.  

In 2024, total US goods trade with Bangladesh was $10.6 billion, with US exports to Bangladesh at $2.2 billion, while imports from Bangladesh stood at $8.4 billion. This resulted in a US trade deficit of $6.2 billion, a 2% increase from 2023.  

According to Tanvir and Shovon Islam, the formula used for tariffs:  

Trade Deficit ÷ Imports to the US from that country (in billion dollars)

  • Bangladesh: 6.2 ÷ 8.4 = -74% → Tax halved to 37%
  • India: 45.7 ÷ 87.4 = -52.3% → Tax set at 26%
  • Pakistan: 3 ÷ 5.1 = -58.8% → Tax set at 29%
  • Indonesia: 17.9 ÷ 28 = -64% → Tax set at 32%
  • Vietnam: 123.5 ÷ 136.6 = -90% → Tax set at 46%

To mitigate the impact, Bangladesh must increase its imports from the US, including arms, machinery, fighter jets, and ships, to help balance trade and reduce the deficit, said Tanvir.

The bar chart shows the tariff rates across Asia countries. Photo: Reuters

The bar chart shows the tariff rates across Asia countries. Photo: Reuters

“Negotiation and diplomacy will be crucial, but Trump is unlikely to budge unless there’s something in it for him,” Tanvir said. “He’s a dealmaker, not a traditional politician. Bangladesh has to give him something to get something in return.”

Concerns over LDC graduation

Shams Mahmud, managing director of Shasha Denim Ltd, told TBS the new tariffs raise critical issues for Bangladesh, particularly as it prepares to graduate from its Least Developed Country (LDC) status.

“Bangladesh now finds itself facing higher tariffs for exports to the US than our competitors,” he said.

He also raised concerns over foreign companies relocating from China to Bangladesh to take advantage of US market access, saying this shift is now in question.

“Our tax collection system, which heavily relies on import duties, now needs to be reviewed in light of these tariffs,” Shams added.

“Most importantly, as Bangladesh moves towards LDC graduation, this new scenario means the transition will not be smooth. It raises the question of whether graduation should be re-evaluated,” he added.

With Bangladesh’s RMG sector being severely impacted, Shams warned that the country’s macroeconomic stability will now come under stress.

Major threat to Bangladesh’s RMG sector

Meanwhile, former BGMEA vice president Rakibul Alam Chowdhury warned that the newly imposed 37% tariff by the US is expected to severely impact the RMG sector.

“It is a major threat for us. Our competitors, India and China, will benefit from the new tariff structure as their rates are comparatively lower than Bangladesh’s,” he told TBS.

He explained that buyers bear the cost of duties, and if US buyers find that the added tariff increases the product price beyond their market threshold, they will seek alternative sourcing to minimise costs.

Meanwhile, rising costs of manufacturing — driven by wage hikes and soaring inflation — are making it increasingly difficult for Bangladeshi manufacturers to stay competitive, Rakibul said.

Trump stokes trade war as world reels from tariff shock

“We are in discussions with buyers to maintain orders already in the pipeline. They, too, are assessing the situation and looking for a viable solution,” he added.

Addressing the 74% tariff imposed by Bangladesh on US products, Rakibul noted that the country imports very little from the US.

“Imposing such a high tariff is unrealistic, which prompted the US government to introduce this new tariff,” he remarked.

He urged the government to reassess its tariff policy and engage in diplomatic efforts to convince the US to withdraw the new tariff.

“Otherwise, our RMG sector will be in serious danger,” he warned.

TNZ workers reject Tk3cr payment offer before Eid, vow to continue protests

POST BY
RMG Bangladesh
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Workers of TNZ Group have rejected the company’s offer to pay Tk3 crore in dues before Eid-ul-Fitr, insisting on full payment of their outstanding wages and Eid bonuses amounting to over Tk17 crore.

After a meeting at Shrom Bhaban in Dhaka this afternoon, Labour and Employment Secretary AHM Shafiquzzaman said TNZ Group agreed to arrange Tk3 crore by selling some of their machines to pay off the workers.

In this regard, TNZ Apparels cutting operator Shahidul Islam said the workers will continue their protests until all their dues are paid. 

“We will continue our demonstrations in front of Shrom Bhaban, even on Eid day,” said Shahidul.

During the meeting, Shafiquzzaman also said three top officials of the TNZ Group will remain in police custody until the owner, who has been living abroad for a long time, returns to the country.

They are TNZ Group Director Shariful Islam Shahin, Executive Director Ali Hossain and Group CHO Enamul Haque.

“If the workers are unable to celebrate Eid, the factory officials will not be allowed to do so either,” the labour secretary said.

The development comes after a group of garment workers continued their demonstration in front of Shrom Bhaban (labour ministry office), demanding three months’ unpaid wages and their Eid bonus. 

The workers, mostly women, gathered near the labour ministry early in the morning, holding placards and chanting slogans to press home their demands.

Later, the labour secretary also mentioned that after the Eid holidays, he will hold another meeting on 8 April to discuss TNZ Group’s issues. 

“Before May Day, we want to ensure a resolution to the TNZ [Group] issue,” he said.

Labour leader Joly Talukdar, however, said, “The labour secretary has not given any decision to solve these issues.”

Iqbalur Rahman, former president of the Biplobi Chhatra Moitri said, “We refuse [to accept] their decisions and will continue our protest.”

TNZ Group owes a total of Tk17.13 crore to over 3,000 workers across its three readymade garment factories. In November last year, the government allocated Tk16 crore to earlier dues of workers.

The meeting

During the meeting this, Labour Secretary Shafiquzzaman said about 12 garment factories, including TNZ Group, Style Craft Group, Mahmud Group, Roar Fashion, Basic, and Ssain Apparels, are facing difficulties in paying workers’ wages and Eid-ul-Fitr bonuses.

He said most crisis-hit factories have resolved their payment issues following extensive efforts by the government, law enforcement agencies as well as BGMEA. 

“After continuous efforts, we have managed to secure funds for most factories,” he said.

However, TNZ Group remains an exception, as its owner is currently abroad, and its top management has failed to secure funds for worker payments. As a result, the company is now being forced to sell machinery to raise Tk3 crore.

In a bid to ease the financial strain on the sector, the government has released Tk2,250 crore from exporters’ cash incentive claims this year, a significant increase from Tk700 crore last year.  

Meanwhile, the Industrial Police reported that almost all factories under the country’s four major trade bodies have cleared wages and allowances. 

However, factories such as TNZ Group, Mahmud Group, and Style Craft Group continue to face challenges, with the ministry and trade bodies actively working to resolve these issues.

Meanwhile, according to a BGMEA report published this, 11 ready-made garment factories have yet to pay Eid bonuses. 

Out of 2,107 operational factories – 1,769 in the Dhaka region and 338 in Chattogram – 2,099 have cleared February wages, 2,079 have paid partial or full wages for March, and 2,098 have disbursed Eid bonuses.

RMG exporters struggle as rise in ‘open costing’ by buyers cuts profits

POST BY
RMG Bangladesh
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Bangladesh’s RMG exporters are seeing profits shrink as buyers increasingly control pricing through open costing, which has grown from 10% to 60% of total exports over the last decade. This pricing method is making it harder for factory owners to stay profitable, with some even facing financial losses.

What is open costing?

Under open costing, buyers determine product prices based on a transparent breakdown of production costs, including raw materials, labour, overhead, and profit margins. This system gives buyers greater control, but factory owners say it does not account for unexpected costs, such as sudden supply chain disruptions, delays in raw material supply, being forced into underhand dealings, or unexpected labour unrest that shuts down factories – all of which increase production costs.

Factory owners speak out

Inamul Haq Khan Bablu, Managing Director of Ananta Garments, said due to open costing, profit margins have completely decreased. Even a slight deviation here and there leads to losses, because since buyers nominate factories for most of the raw materials, there is no way to deviate from that.

He said that in 2023, his company lost Tk4.5 crore due to vandalism and arson during labour unrest at their Gazipur factory. More factory closures in Ashulia added to the losses.

Shovon Islam, Managing Director of Sparrow Group, which exports $300 million worth of garments annually, said 70% of their orders are priced through open costing. He described it as “walking a tightrope”, as it assumes stable production conditions – something that is often unpredictable in Bangladesh.

Low profit margins and competitive pressure

Garment exporters say intense competition among factories in Bangladesh is further weakening their ability to negotiate prices.

They say they are currently only given a profit margin based on the cost of making, which ranges from 1% to 4%.

They further add that in open costing, buyers also factor in various tax and cash incentive benefits provided by the government to RMGs, meaning these benefits are not reaching the exporters but are instead ending up in the buyers’ pockets.

The other method of price determination is known as Freight on Board (FOB) pricing where prices include different cost factors; open costing does not allow extra profit from raw materials and accessories.

While open costing is used globally, factory owners argue that in India, Vietnam, Thailand, and Cambodia, it works better because these countries have higher profit margins and fewer disruptions.

Shovon Islam says, “In most cases, around 60% of the product’s inputs must be sourced from the buyer’s nominated suppliers. The remaining costs also need to be disclosed to the buyer. On this, a maximum of 3% profit margin can be made.”

Open costing involves large bulk orders

Entrepreneurs say large bulk orders are primarily priced using this method. Major brands that source large quantities from Bangladesh include Inditex, H&M, Marks & Spencer, Primark, C&A, Walmart, Gap Inc, and Uniqlo.

In FY24, Bangladesh exported nearly $36 billion worth of apparel products, including home textiles. Among these, H&M stands out as the largest single brand, sourcing nearly $3 billion annually from Bangladesh.

Shovon Islam said, “Typically, orders over 1 lakh pieces are priced using open costing. Since large buyers place large-scale orders, they adopt this approach.”

He further mentioned that at least 120 large factories in the country supply orders based on the open costing method.

He also pointed out that it is not high-value or specialised apparel, but rather low-cost basic items like basic denim, T-shirts, polo shirts, etc, that are most commonly priced using open costing. “Since Bangladesh primarily produces basic items, we are at a disadvantage when it comes to pricing.”

Do buyers lower prices even further?

Several exporters say sometimes buyers do not even want to pay the price determined through open costing.

Fazlee Shamim Ehsan, chief executive officer of Fatullah Apparels Limited, told TBS, “Let’s say, under open costing, the price for a T-shirt is $1. However, instead of placing the order at this price, the buyer will then approach four more suppliers, asking if they are willing to accept a lower price through a tender process.

“Some may agree to take the order at $0.98, others at $0.96, and ultimately, the lowest bidder will win the order.”

This race to the bottom puts more pressure on exporters. Explaining why they accept orders at such lower prices, he said, “Some factories have excessive capacity. When there is little work, the risk of losses due to wages, overhead costs, and other expenses increases. To reduce these losses, factories may take orders at break-even points or even at a loss.”

The Fair Wear Foundation, an organisation focused on ethical garment production, says brands must take responsibility for fair pricing and improve transparency in open costing.

TBS reached out via email to H&M, Walmart, and Gap Inc to inquire about the percentage of sourcing from Bangladesh and the allegations of low pricing on Bangladeshi garments. While H&M responded to the email, the brand declined to share the information due to business confidentiality.

“The open costing method is in place in all our sourcing markets. Bangladesh is one of our largest production markets and we are committed to developing responsible purchasing practices in place that ensure we are a fair business partner to our suppliers,” H&M Group replied.

Can exporters unite to raise prices?

Factory owners say “unhealthy competition” among local exporters is making it easier for buyers to push prices down. They see setting standards for price increases and maintaining unity among suppliers as a solution.

An RMG company’s managing director, speaking on condition of anonymity, told TBS, “If all factories decide to raise prices by 10%, buyers would not leave Bangladesh.”

He added that despite rising costs, Bangladesh remains one of the cheapest garment suppliers – but exporters still accept orders at a loss.

Data from UK Trade Info indicates that during the January-October period of 2023, the average price of apparel products exported from Bangladesh was 21.39% lower than those from China, 32% lower than those from Turkey, and 26.75% lower than those from India.

চট্টগ্রামে ৬ মাসে বন্ধ ৫২ পোশাক কারখানা

POST BY
RMG Bangladesh
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গত ছয় মাসে চট্টগ্রামে বন্ধ হয়েছে ছোট-বড় অন্তত ৫২ পোশাক কারখানা। একই সময়ে কাজের আদেশ কমেছে প্রায় ২৫ শতাংশ। এতে করে কর্মহীন হয়ে পড়েছেন বেশ কয়েক হাজার শ্রমিক।

এ দিকে, আসন্ন ঈদের আগে শ্রমিকদের বেতনভাতা দেওয়া নিয়ে আশঙ্কায় আছে জেলার অন্তত ৪৪ কারখানা। এগুলোকে ‘ঝুঁকিপূর্ণ’ প্রতিষ্ঠানের তালিকায় রেখেছে শিল্প পুলিশ।

তবে এসব প্রতিষ্ঠানকে ‘ঝুঁকিপূর্ণ’ বলতে নারাজ বাংলাদেশ পোশাক প্রস্তুতকারক ও রপ্তানিকারক সমিতি (বিজিএমইএ)। সংস্থাটির তথ্য বলছে—চট্টগ্রামে নিবন্ধিত পোশাক কারখানা ৬১১টি। চালু আছে ৩৫০টি। দীর্ঘদিন ধরে বন্ধ ২৬১ কারখানা। চালু থাকা ৩৫০ কারখানার মধ্যে ১৮০টি বিদেশি ক্রয়াদেশ নিয়ে কাজ করছে। বাকিগুলো সাব-কন্ট্রাক্ট নিয়ে কাজ করছে। এর মধ্যে অনেকগুলো বন্ধ আছে বা কার্যক্রম সীমিত করে ফেলেছে।

চট্টগ্রাম শিল্প পুলিশ-৩ এর পরিসংখ্যান অনুসারে—চট্টগ্রামে বিজিএমইএ, বিকেএমইএ, বিটিএমইসহ কয়েকটি সংস্থার মোট পোশাক কারখানার সংখ্যা ৫৮০টি। চালু আছে ৫২৮টি। কার্যাদেশ না থাকায় বন্ধ হয়ে গেছে ৫২ কারখানা। গত ছয় মাসে এসব প্রতিষ্ঠান বন্ধ হয়েছে বলে জানিয়েছেন সংশ্লিষ্টরা।

এ প্রসঙ্গে বিজিএমইএ চট্টগ্রামের সাবেক সহসভাপতি রাকিবুল আলম চৌধুরী দ্য ডেইলি স্টারেক বলেন, ‘কার্যাদেশ কমে যাওয়ার পাশাপাশি রাজনৈতিক ও ব্যাংকিং জটিলতার কারণেও কারখানা বন্ধ হয়েছে। এসব কারখানার অধিকাংশ নন-বন্ডেড প্রতিষ্ঠান।’

তিনি আরও বলেন, ‘শিল্প পুলিশ কর্তৃপক্ষ চট্টগ্রামের বেশ কয়েকটি পোশাক কারখানাকে ঝুঁকিপূর্ণ বললেও আমরা তা মনে করি না। কোনো কারখানার মালিক ইচ্ছা করে শ্রমিকদের বেতনভাতা বন্ধ রাখেন না। এখনো সময় আছে বেতনভাতা দেওয়ার। মালিকরা ২৫ মার্চের মধ্যে ঈদের বোনাস ও ২৮ মার্চের মধ্যে বেতন দেওয়ার চেষ্টা করছেন। বিজিএমইএ বিষয়টি নিবিড়ভাবে পর্যবেক্ষণ করছে।’

ঈদে শ্রমিকদের বেতনভাতা দিতে পারবে কিনা তা নিয়ে ৪৪ কারখানা আশঙ্কা করছে। শিল্প পুলিশের কর্মকর্তারা বলছেন, এসব প্রতিষ্ঠানে অতীতেও বেতনভাতা নিয়ে আন্দোলন হয়েছিল।

শিল্প পুলিশের ভাষ্য—কালুরঘাট বিসিক শিল্প এলাকায় আটটি, সিইপিজেডে ছয়টি, ডবলমুরিংয়ে ছয়টি, পাহাড়তলীতে পাঁচটি, কেইপিজেডে তিন, বায়েজিদে তিন, নগরী ও উপজেলাগুলো আরও ১৩টিসহ মোট ৪৪ কারখানার কাজের আদেশ কম থাকায় ঈদের আগে বেতনভাতা নিয়ে শ্রমিক অসন্তোষের আশঙ্কা আছে। এসব কারখানায় শ্রমিক সংখ্যা প্রায় ২১ হাজার।

চট্টগ্রামে ৪৪ পোশাক কারখানার অসন্তোষ প্রসঙ্গে শিল্প পুলিশ বলছে—ক্রেতাদের সময়মতো পণ্য না নেওয়া, আর্থিক সংকট, কাজের আদেশ আশঙ্কাজনক হারে কমে যাওয়া, বেতনভাতা বকেয়া থাকায় শ্রমিকদের কাজে যোগ না দেওয়াসহ অন্যান্য কারণে কারখানাগুলো আর্থিক সংকটে আছে। সে কারণে ঈদের আগে বেতনভাতা নিয়ে অসন্তোষ দেখা দিতে পারে।

ঝুঁকিতে থাকা এসব কারখানার কর্মকর্তারা নাম প্রকাশ না করার শর্তে ডেইলি স্টারকে জানান, তাদের প্রতিষ্ঠান আগে বিদেশি ক্রেতাদের কাছ থেকে সরাসরি কার্যাদেশ নিয়ে কাজ করতো। পরিস্থিতি ক্রমশ হাতছাড়া হতে শুরু করলে সাব-কন্ট্রাক্টে কাজ করতে হয়েছে। যেসব বড় কারখানা কার্যাদেশ দিত তারাও কাজের আদেশ পাচ্ছে না। এ কারণে শ্রমিকদের বেতনভাতা দেওয়া সম্ভব হচ্ছে না।

নগরীর পাহাড়তলী এলাকায় বন্ধ হয়ে যাওয়া এক পোশাক কারখানার শ্রমিক সন্তোষ মন্ডল ডেইলি স্টারকে বলেন, ‘কারখানা বন্ধ হয়ে যাওয়ায় পরিবারের সদস্যদের নিয়ে কষ্টে আছি। গত দুই মাস ধরে নতুন চাকরি খুঁজছি।’

বিজিএমইএ সূত্রে জানা গেছে—গত ছয় মাসের মধ্যে বেইজ ট্রেক্সটাইল ও ওয়েল গ্রুপের পাঁচ কারখানার মধ্যে তিনটির কার্যক্রম বন্ধ। ওয়েল গ্রুপের মালিক ক্ষমতাচ্যুত আওয়ামী লীগ সরকারের ঘনিষ্ঠ হওয়ায় বিদ্যমান পরিস্থিতিতে কারখানা বন্ধ আছে।

চট্টগ্রামের মোহরা এলাকায় বন্ধ হয়ে যাওয়া অপর পোশাক কারখানার মালিক নাম প্রকাশ না করার শর্তে ডেইলি স্টারকে বলেন, ‘গত ৫ আগস্টের পর কয়েক দফায় হামলা চালিয়ে কারখানায় লুট করা হয়েছে। বাধ্য হয়েই কারখানা বন্ধ করে দিয়েছি।’

বিজিএমইএ’র প্রশাসক কমিটির সদস্য ও ক্লিফটন গ্রুপের পরিচালক এমডিএম মহিউদ্দিন চৌধুরী ডেইলি স্টারকে বলেন, ‘পোশাক কারখানাগুলোয় কাজের আদেশ কমে গেছে। ঠিকমতো পণ্য না পাঠানোর কারণে অনেক কারখানার মালিক আর্থিক সমস্যায় আছেন। এ কারণে শ্রমিকদের বেতনভাতা দিতে সমস্যা হচ্ছে। অনেক কারখানার মালিক সংকটের কারণে প্রতিষ্ঠান চালাতে হিমশিম খাচ্ছেন।’

তিনি আরও বলেন, ‘কোনো মালিকই শ্রমিকদের বেতনভাতা বন্ধ রাখতে চান না। ঈদের যাতে কোনো শ্রমিক অসন্তোষ না হয় সে জন্য কাজ করছি।’

চট্টগ্রাম শিল্প পুলিশের সিনিয়র সহকারী পুলিশ সুপার মো. জসীম উদ্দিন ডেইলি স্টারকে বলেন, ‘আমাদের তথ্য অনুসারে ৪৪ কারখানা বেতনভাতা দেওয়া নিয়ে আশঙ্কা করছে। বিভিন্ন সময় এসব প্রতিষ্ঠানে সংকট হয়েছিল। কারখানার মালিকদের সঙ্গে যোগাযোগ করেছি। আশা করছি সংকট সমাধান করা সম্ভব হবে।’

RMG sector Eid holidays to begin tomorrow

POST BY
RMG Bangladesh
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Workers in the ready-made garment (RMG) sector are set to begin their Eid-ul-Fitr holidays, which can extend up to 10 days, including the three-day official public holiday. 

Through mutual discussions between factory owners and workers, employees can take an additional 6 to 7 days of leave, adjusted against their weekly and annual earned leave.

According to a notice issued by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the government has declared 3 April (Thursday) a public holiday through an executive order. 

However, this order does not apply to private industries or factories. As a result, factory-specific festival leave schedules have been set following labour laws and communicated by BGMEA.

Regarding additional leave, the notice states, “The factory management and workers’ representatives will discuss and determine, in accordance with labour laws, when the Eid-ul-Fitr holiday will commence.”

Speaking to The Business Standard (TBS), Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), said,  “The government holiday remains limited to three days. However, many workers are extending their leave by 5 to 7 days. Some have already compensated for these leaves by working on their weekly holidays in advance, while others plan to do so after returning from the holiday. In this way, workers are taking a total of 8 to 10 days of leave, including the official three-day holiday. However, these leaves are being determined through discussions between workers and factory owners, as some factories, due to workload, cannot afford to grant extended holidays.”

Holiday starts from 26 March 

A total of 161 factories have announced vacations starting from 26 March, while 374 factories have announced vacations from 27 March.

On the other hand, 648 factories have announced vacations from 28 March, and 924 factories have announced vacations from 29 March, according to the BGMEA.

A total of 207 factories have yet to pay their employees’ Eid bonuses. However, factories were instructed to clear bonuses by the 20th of Ramadan and to pay half of March’s salary before the Eid vacation.
Additionally, 24 factories have yet to clear their employees’ February salaries. 

BGMEA data also mentioned that one factory has not yet paid its workers’ January salary.

As per labour law, factory owners must pay their employees’ salaries within seven working days of the following month.

A total of 11 BGMEA-member factories remain at risk of unrest due to the non-payment of workers’ wages and Eid bonuses.

According to Mapped in Bangladesh (MIB), there are 3,555 export-oriented garment factories in the country, employing approximately 3.053 million workers.

Eid-ul-Fitr is expected to fall on 31 March, based on moon sighting. 

The Ministry of Public Administration has declared five consecutive holidays from 29 March to 2 April, including three public holidays (29-31 March). Additionally, with the 3 April general holiday declaration, government employees will enjoy a nine-day Eid vacation.

February wages still unpaid in 29 RMG factories, eid bonuses due for many

POST BY
RMG Bangladesh
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With Eid-ul-Fitr just around the corner and many ready-made garment (RMG) factories officially beginning holidays from tomorrow, concerns over worker unrest persist as many factories are yet to pay wages and Eid bonuses.

Bangladesh Garment Manufacturers and Exporters Association (BGMEA) states that the risk of unrest looms over 11 affiliated factories due to the non-payment of wages and bonuses. The workers at these factories are demanding immediate payments so that they can celebrate Eid with financial security.

As per BGMEA data, 29 RMG factories have yet to pay workers’ February salaries, despite labour laws requiring salary payments within seven working days of the following month.

One factory is yet to give the employees their January wages.

In addition, 207 factories have yet to disburse Eid bonuses, despite instructions to complete these payments by the 20th of Ramadan. Factories were also directed to pay at least half of March’s salaries before the Eid break, but many have not complied.

Meanwhile, according to Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) data as of today, a total of 613 BKMEA member factories have been assessed regarding wage payments, Eid bonuses, and leave allocation for workers ahead of Eid-ul-Fitr.

Among them, 584 factories have cleared February salaries, while five are yet to do so. 

Additionally, 393 factories have paid half salaries for March, while 220 (35.89%) have yet to make any payments. In terms of Eid bonuses, 371 factories have disbursed payments, but 118 have not yet made the payments.

According to Mapped in Bangladesh (MIB) data, the country has 3,555 export-oriented garment factories, employing approximately 3.053 million workers.

The RMG sector’s Eid vacation officially begins on 26 March, with 161 factories granting leave from this date. Another 374 factories will begin their holidays on 27 March, while 648 factories have announced closures from 28 March.

The largest group, comprising 924 factories, will start their holidays on 29 March, according to BGMEA data.

Protests over unpaid wages

In Savar, workers demonstrated after their factory announced an indefinite closure, while in Gazipur, workers protested against unpaid salaries and bonuses.

In Hemayetpur Rishipara of Savar, workers of Jeans Manufacturing Company Ltd blocked the Hemayetpur-Singair regional road from 7:30am after discovering an indefinite closure notice under Section 13(1) of the Bangladesh Labour Act, which enforces a “no work, no pay” policy.

The factory’s closure notice stated that operations were suspended due to vandalism, violence, and unrest caused by some workers.

According to workers, the issue began on Monday when they staged a sit-in protest inside the factory. 

“The management had brought in five to six outsiders, which triggered unrest. Later, an official was also beaten up, and I heard he is now hospitalised,” said a sewing operator requesting anonymity.

The workers were demanding a 10-day Eid holiday instead of the eight days granted by the management, along with payment for 20 working days of March and pending overtime wages.

The blockade ended at 9:30am after army officials intervened, but workers continued their demonstration in front of the factory. 

In Gazipur’s Kaliakair upazila, workers of Hagh Knitwears Ltd blocked the Dhaka-Tangail highway from 7:30am to 8:30am, demanding three months’ due wages and Eid bonuses. The protest caused severe traffic disruptions before police, industrial police, and army personnel intervened.

According to workers, they had been seeking their wages for several days, but the factory management did not respond. When they arrived at the factory yesterday morning, they found the main gate locked, prompting them to take to the streets.

3 more RMG factories receive LEED certification

POST BY
RMG Bangladesh
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Bangladesh has further cemented its position as a global leader in sustainable garment manufacturing, with three more factories earning Leadership in Energy and Environmental Design (LEED) certification.  

With these latest additions, the country now has 240 LEED-certified factories, including 98 with Platinum certification and 128 with Gold certification. Bangladesh also remains home to 66 of the world’s top 100 LEED-certified garment factories, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).  

The newly certified factories—Echotex Limited, Elite Garments Industries Ltd, and Euro Knit Spinn Ltd—have all achieved Platinum certification, the highest level under the LEED rating system.  

Among the Newly Certified Factories – Echotex Limited is located in Polli Biddut, Chandura, Kaliakoir, Gazipur. Certification level: Platinum.

Elite Garments Industries Ltd is located in Bade Kalmeswar, Board Bazar, National University, Gazipur. Certification level: Platinum.

And Euro Knit Spinn Ltd is located in Dhanua, Sreepur, Gazipur. Certification level: Platinum.

LEED certification, developed by the US Green Building Council (USGBC), is a globally recognised benchmark for environmentally sustainable construction. It assesses factors such as energy efficiency, water conservation, indoor air quality, and the use of sustainable materials, according to the BGMEA.  

Bangladesh’s garment industry has been increasingly focusing on green manufacturing to enhance sustainability and maintain a competitive edge in the global market. The country’s dominance in LEED-certified factories reflects its commitment to reducing carbon emissions while complying with international sustainability standards.  

Mohiuddin Rubel, former director of BGMEA, lauded the growing adoption of green initiatives in the RMG sector. He noted that the increasing number of sustainable factories not only enhances Bangladesh’s global reputation but also ensures long-term environmental and economic benefits for the industry.  

With international buyers prioritising sustainability in sourcing, Bangladesh’s leadership in green garment manufacturing is expected to further strengthen its position as a key player in the global apparel market.

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