79pc RMG buyers yet to adjust their prices with revised wages: BGMEA

DE Online Report
Over 79 percent of foreign buyers are yet to start paying more for readymade garment products despite promising to do so following the implementation of a new wage structure in December, a new survey by the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has revealed.
Besides, only 3 percent of buyers have increased product prices up to 5 percent, shows the survey report unveiled on Tuesday at a club in the capital. The survey, “Garment Industries’ crucible: Our views”, is based on the response from 66 RMG manufacturers, and was conducted by the Forum, a panel of the BGMEA.
Unveiling the survey report, Forum panel leader Faisal Samad, also director of BGMEA, said, “Due to the global economic crisis, our RMG industry is suffering. Such a survey helps to find out the real scenario. “During the Covid-19 period, the BGMEA conducted a survey. Primarily, manufacturers hesitated to participate. But when the survey was done, the government issued 14 circulars based on the report which helped us make a comeback.”
According to the Forum survey, 4.5 percent of RMG buyers increased product prices by 1 percent; 6 percent of buyers increased by 2 percent; 3 percent of buyers increased by 3 percent; and 4.5 percent of buyers increased by 4 percent. In 2023, 32.8 percent of apparel manufacturers said their customs and bond expenses increased by 26-50 percent year-on-year.
On average, the RMG factories’ produced 27.5 percent below capacity due to lack of orders last year.