June 17, 2024, 5:23 pm

Staff Correspondent

2023-11-19 23:27:50 BdST

BGMEA urges buyers to raise RMG prices

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged again the international retailers and brands 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 end with effect from December 1.

As the deadline for implementation of the new wage nears, BGMEA President Faruque Hassan again sent letters to the international buyers on Friday seeking higher prices from them to adjust the new wage.

“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. Let me once again re-iterate the situation we have been through for your kind information, said Hassan in the letter.

He said that the industry faced unprecedented challenges in the past decade, starting from workplace safety issue and then faced the Covid pandemic.

“It has been an uphill struggle for us to find ways between the spiraling costs and remain competitive. Yet with your support we have been able to maintain growth so far. I am sure you are informed that in recent years our 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 impact 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.

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