Staff Reporter :
Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan on Saturday urged the government to re-consider the decision of fuel price hike for creating a stable business atmosphere.
He said that the production and transportation costs of the RMG sector have increased by 5 per cent after the recent hike in diesel price.
“We haven’t had much employment in the last two years because of Coronavirus. In order to increase investment and employment, it is necessary to facilitate business and continue existing policy,” the BGMEA chief said while speaking at a press conference in a city hotel.
He also said that despite the increase of orders in readymade garments (RMG) sector, the prices of the products have not been increased much yet.
“We are working to raise the prices of apparels. At the same time, we are asking our members to fix the price of the products on a fair basis with the suppliers considering the increase in the cost of cotton, yarn and other raw materials and freight. They should not take orders for products at any price lower than production cost,” he said.
Replying to a question, the BGMEA president said, “We are now getting a slightly higher price than before, but we are not getting the price compared to the costs of production and those have gone up.”
He also urged the apparel makers not to take work order of any item below their production cost.
“Please do not negotiate the prices of apparel items below the production cost anymore as we are receiving adequate number of work orders but there is a fear of the return of a crisis in the supply chain,” the BGMEA chief said.
The international retailers and brands have been paying higher prices because of a hike in raw material prices and freight charges, he said. But the increased rates for work orders are still not enough for the garment makers to make any profit thanks to the exponential rise in raw material prices and freight charges, he said.
He further said the 37th ‘World Fashion Convention-2022’ will be held in Dhaka in November next year. Besides, the BGMEA will organise ‘Made in Bangladesh Week’ to uphold the image of the country in the wake of World Fashion Convention, he said.
In the seven-day event, the BGMEA will organise Dhaka Appeal Summit, fashion festival, exposition and award programmes.
To promote the country, apex trade body of the readymade garment exporters will make a road map so that it can be branded ‘Made in Bangladesh’ across the globe, he said. BGMEA’s Vice President’s Syed Nazrul Islam, SM Mannan (Kochi), Md Shahidullah Azim, Khandoker Rafiqul Islam, Miran Ali, Rakibul Alam Chowdhury, Directors Barrister Shehrin Salam Oishee, Asif Ashraf, Md Mohiuddin Rubel and Tanvir Ahmed, among others, were present.
