Despite giving new wage exporters deprived of right prices
Staff Reporter :
Although the new minimum wage structure has been implemented in the local readymade garment industry, over 79 per cent apparel exporters are not getting increased prices from buyers due to weak negotiation capacity, according to a survey.
The survey also said that only 3 per cent buyers increased product price up to 5 per cent.
The findings came from a survey title, “Garment Industries’ crucible: Our views”, where 66 RMG makers exchanged their opinions.
Forum, a panel of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) conducted the survey.
Forum panel leader Faisal Samad, also a director of the BGMEA, presented the survey at Dhaka club in the capital on Tuesday.
According to the survey, 4.5 per cent buyers increased apparel price by 1 per cent, 6 per cent buyers increased by 2 per cent, 3 per cent buyers increased by 3 per cent and 4.5 per cent buyers increased product price by 4 per cent.
In 2023, 32.8 per cent apparel manufacturers said their customs and bond related expense increased by 26 to 50 per cent year-on-year, 26.6 per cent RMG makers viewed their customs and bond cost rose by up to 25 per cent, 20.3 per cent said the cost hiked by 51-75 per cent, 6.3 per cent said the cost upped by 76-100 per cent and 11.8 per cent blamed that their cost jumped by over 100 per cent year-on-year, the survey read.
The survey also showed that average 3.9 per cent FoB price decline year-on-year in last year amid the severe high inflation, and 47.1 per cent manufacturers said that buyers reduced FoB price by over 5 per cent year-on-year.
Meanwhile, the survey find out that only 19.1 per cent of factories able to manage 100 per cent orders for the next four months, while 42.6 per cent claimed that they have less than 50 per cent orders during the period compared their capacity.
Faisal Samad said, “Our RMG industry is suffering due to the global economic crisis. Such kind of survey helps to find out the real scenario. During the Covid-19 period, BGMEA conducted a survey. Primarily, manufacturers felt hesitation to participate.”
