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COVID reappears in Europe and rising production costs have hit the Bangla RMG sector

The re-emergence of COVID-19 in Europe and rising fuel and raw material costs are impacting the recovery efforts of Bangladesh’s ready-made garment (RMG) sector. According to Bangladesh’s Ready-made Garment Manufacturers and Exporters Association (BGMEA), RMG export orders are increasing with price, but the latter is not yet in sync with manufacturing costs.

BGMEA President Falke Hassan urged the government to pay attention to this issue, saying that recent 23% increases in fuel prices, including rising raw material prices, will increase production costs by 4-5%.

The high-level BGMEA delegation recently toured Europe, including the United Kingdom.

The re-emergence of COVID-19 in Europe and rising fuel and raw material costs are impacting the recovery efforts of Bangladesh’s ready-made garment (RMG) sector. According to Bangladesh’s Ready-made Garment Manufacturers and Exporters Association, RMG export orders are increasing with price, but the latter is not yet in sync with manufacturing costs.

Over the past year, yarn prices have risen 60%, container fares have risen 350% to 500%, dye and chemical costs have risen 40%, and wages have risen 7.5%, Hassan said. Electricity has risen 13%. Gas prices are also rising, according to Bangladeshi newspaper reports.

BGMEA is now afraid that soaring fuel prices will lead to an increase of about 5% in production costs, which will not be reflected in product prices.

Hassan urged exporters not to negotiate orders below production costs in any case. At the same time, he added that foreign buyers need to be more sensitive about the price of their products and price them with all sorts of cost increases in mind.

Fiber2Fashion News Desk (DS)



COVID reappears in Europe and rising production costs have hit the Bangla RMG sector

Source link COVID reappears in Europe and rising production costs have hit the Bangla RMG sector

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