50 Star US Inc.
Buyers are required to pay the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) an additional 2 cents every piece of exported garment. The goal of BGMEA's price increase on apparel is to attract at least $1 billion more in sales income annually from consumers.
The company is making an effort to cover the increased costs as a result of the nation's rising gas and electricity prices and the impending announcement of the workers' pay scale.
In addition to updating them on the state of Bangladesh's ready-made garment industry, Faruque Hassan, the president of the organization, recently asked that the price of exported clothing be raised in a letter to buyer representatives and brand-retailer representatives.
But in a different letter to its member clothing retailers, he demanded that buyers and sellers agree to raise the cost of each item of clothing by at least two cents.
The apparel industry is said to generate $46 billion in export revenue annually, but roughly $37 billion, or 80% of that amount, must be used to cover the back-to-back import of raw materials. About $7.5 billion of the remaining 20%, or $9 billion, is used for employee wages. In addition, there are other expenses like factory rent and gas and electricity bills. In the meantime, as previously promised, garment workers' salaries will increase in December of this year.
The minimum pay for garment employees was set at Tk 8000 five years ago. The workers are requesting between Tk 22000 and Tk 25000 this time. To address the situation, clothing dealers do not believe there is a way to demand an extra two cents per garment. The ready-made clothing industry is experiencing a complex crisis, primarily as a result of a decline in orders from overseas consumers.
The first Vice President of the BGMEA, Syed Nazrul Islam, declared, "We cannot survive with the current price that the buyers are paying." For this reason, we have asked the buyers to raise the asking price from the present amount by at least two cents per item.
"Our urgent request to the brand owners is that the price should be increased slightly from the price at which they want to buy the product," stated M. Mohiuddin, Director, BGMEA.
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