Buyers still unwilling to increase apparel price
Al Amin :
Despite repeated calls from the local manufacturers, most of the international apparel buyers and brands are still unwilling to increase clothing prices at the moment due to the turmoil economic situation in the developed nations, industry insiders said.
They said that after the announcement of the new minimum wages for the workers of the readymade garment industry, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) sent several letters to the international buyers and brands requesting hike in apparel prices.
Lastly, the apex body held a meeting with the representatives of the brands and buyers in Dhaka on November 15 and urged them to increase the apparel prices as the local manufacturers are struggling hard to find ways between the spiraling costs and remain competitive.
But, most of the representatives were mum in the meeting on the question of apparel prices hike, the BGMEA sources said.
Even the representatives of the small and medium brands and buyers directly said that they would not be able to increase the apparel prices at the moment, the sources added.
BGMEA Vice-President Md Shahidullah Azim told The New Nation, “We are still trying hard to convince the buyers and brands to increase prices as production cost has gone exorbitantly high.
The new minimum wages will be another challenge for the industry. But, we have not yet received any good response from the buyers’ side.”
After the meeting, BGMEA President Farque Hssan sent another letter to the brands, buyers and retailers on November 17 reiterating its call to increase the prices of garment items as factory owners are set to implement the new minimum wage for workers from December 1.
The minimum wage board declared Tk 12,500 as the minimum wage for garment workers on November 7 and later published a gazette to this effect from December 1.
“Further to my letter dated November 8, 2023 regarding the newly declared minimum wages, I explained the new wage structure before you and the overall scenario in our industry,” the BGMEA chief said.
Hassan said that the industry faced unprecedented challenges in the past decade, starting with workplace safety issues and then facing the COVID-19 pandemic.
“It has been an uphill struggle for us to find ways between the spiralling costs and remain competitive. Yet with your support, we have been able to maintain growth so far,” he added.
He said that in recent years, the cost of production has gone exorbitantly high.
Price of electricity has risen by 25 percent, gas price by 286.5 percent, diesel by 68 percent, and similar impacts on transport and other cost factors are notable.
“From July this year, Bangladesh Bank has increased the interest to curb inflation, which has pushed up our cost of finance further, leading to increased production costs of goods,” he said, adding that bank charges, various fees at the municipalities, and city corporations increased too.
