‘Plummeting prices plaguing Bangladesh’s apparel industry’
A generic photo of Bangladesh`s apparel production.
After rise in manufacturing costs due to new pay structure, plummeting unit prices is the main challenge towards Bangladesh’s apparel industry now in the international market.
“We thought we would get some hike in apparel pricing from buyers after raising the wages of workers, but we are not. Prices are plummeting,” Mohammed Nasir, a director of Bangladesh Garment Manufacturers and Exporters’ Association (BGMEA), says.
READ MORE: Min wage set at BDT 8,000 in Bangladesh
According to him, this is the stiffest challenge Bangladesh’s apparel manufacturers are facing now. “Due to rising manufacturing costs and falling prices, many of our factories are closing down. In the last five years, about 1,200 factories have shut down.”
Bangladesh’s garment manufacturers have implemented the new wage structure for workers of the industry with BDT 8,000 as the minimum wage. Though this raise sparked the largest unrest witnessed in recent times due to adjustment problems, now things are under control.
The apparel manufacturers are aware of the problem and are stressing that the only way out of it is to brand the ‘Made in Bangladesh’ tag internationally.
READ MORE: US urged to ensure fair pricing
Already, Bangladesh has started negotiating with buyers on primary levels to raise apparel prices. BGMEA’s new President Rubana Huq, who took office last month, has said that fair pricing of Bangladesh’s apparel will be her priority agenda.
As official measure, Commerce Minister Tipu Munshi has already urged United States, the single biggest export destination of Bangladesh and its biggest apparel market, to raise the pricing of apparel during sourcing. Europe has also been urged the same.
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