Urging the government to pay attention to the issue, BGMEA Chairman Faruque Hassan said the recent 23% increase in fuel prices, including the increase in raw material prices, will increase production costs. from 4 to 5%.
A high-level delegation from BGMEA recently toured Europe, including the UK.
The re-emergence of COVID-19 in Europe and rising fuel and raw material costs are affecting efforts to revive Bangladesh’s ready-to-wear (RMG) sector. While RMG’s export orders have increased with prices, the latter are not yet in line with production costs, according to the Bangladesh Garment Manufacturers and Exporters Association.
Hassan said that over the past year, yarn prices have risen 60 percent, container tariffs have increased 350 to 500 percent, dye and chemical costs have increased 40 percent, wages have increased. 7.5 percent, electricity by 13 percent, while The price of gas has also increased, according to an article in a Bangladeshi newspaper.
The BGMEA now fears that rising fuel prices will cause production costs to rise by around 5% and that this will not be reflected in product prices.
Hassan urged exporters not to negotiate orders below the cost of production under any circumstances. At the same time, he urged foreign buyers to be more sensitive to the price of the product, adding that the price should be determined taking into account the increase in all kinds of expenses.
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