Bangladesh readymade garment (RMG) exporters recently called on buyers and retailers to ensure a sustainable RMG sector by raising product prices. They also demanded a 5 per cent cash incentive for the sector for three years, saying the industry experiences huge pressure of wage hike, energy price rise, remediation cost and low prices of products. The demand was made at a meeting on sustainability of the RMG sector in the country organised by the Dhaka Chamber of Commerce and Industry.
Despite having a decent number of green factories, the country is not getting decent prices for its products, said Rubana Huq, President of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). The sector is yet to gain maturity in price negotiation, she said.
Commerce Minister Tipu Munshi said energy prices, cost of port and infrastructural weaknesses are reducing the competitive edge of the RMG sector, which needs some incentives and support for a certain period. Munshi said a free trade agreement with Sri Lanka may be signed within a month.