Though order is increasing, RMG executives are facing a great problem in product pricing. Foreign Buyers want quality product with a low price. For various reasons, including energy crisis and factory remediation cost, production cost has increased by 18 percent, according to Bangladesh Garment Manufacturers and Exporters Association (BGMEA). However, the garments product price of Bangladesh has declined to 40 percent in last 15 years, according to the research of Pennsylvania University and Colorado University.
Our customers always demand good product but offer low price. If we can survive in this low price then order will increase, said NurulMahmoodTuhin, Country manager of Golden Touch Import Ltd.
“At present yarn cost is high, government added more tax and Accord Alliance pushing continuous pressure. So the Govt., BGMEA, BKMEA should take proper step in price issue as day by day production cost is increasing,” said Mahbub Hossain and MahmoodTuhin.
The price should be good enough to maintain a sustainable business, industry insiders told. They further opined that taking order at price which is not profitable has no meaning for the industry. There are allegations that some companies specially having big volume capacities are taking orders at such low price which is literally impossible to be profitable. This is putting unhealthy trend in the sector and hampering whole country. People are working heard, valuable resources are being burnt and the country is hardly retaining anything, opined industry insiders.
Engr. Asit Ghosh
Assistant Professor, TE