Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Wednesday, November 13, 2019 10:01:42 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

39pc RMG exporters supply at losses

By
09th-Nov-2019       
Share
  • Twitter
  • Google+
  • Save
  • E-mail
  • Print
Comments
Share your thought
Post a comment »
Read all () »

Economic Reporter :
Over 39 percent of the Bangladeshi garment exporters accept prices below their production costs for the sake of business relations with international retailers, according to a study by the Fair Wear Foundation (FWF).
Based in Amsterdam, FWF is an independent multi-stakeholder organisation that works with garment brands, garment workers and industry influencers to improve labour conditions in garment factories.
Apart from the threat of severed business ties, the suppliers accepted work orders from froeign buyers at rates lower than their production costs for mistakes in cost calculation or to one-up their competitors, the study also found.
If the suppliers do not accept prices below their production costs, they will lose everything as they will have to pay the workers at the end of the month without any production in the factories, said Koen Oosterom, FWF's country manager for Bangladesh and Myanmar.
The findings of the study styled "Labour minute costing and price negotiations with buyers" were shared at an event held at the capital's Lakeshore Hotel. The data used were from 2013 to 2016.
The factory management also accepts lower prices in the hope of price hike and profit in future, he said.
The effects of selling the garment items at prices lower than the production costs are more dangerous. Some 33 percent think they will face the risk of closure and 29 percent will face difficulties in wage payment to workers, the study also said.
Only 13 percent of the buyers who source from Bangladesh increased the prices of garment items after the minimum wage hike in 2013. Globally, the picture is almost similar to Bangladesh.
During that time, only 25 percent of the global buyers had increased the prices of the garment items after the wage hike, he said.
Between 2011 and 2016, the overall prices of Bangladeshi garment items declined 7.79 percent.
The picture of price hike by buyers following the latest round of the minimum wage increase in December last year is worse than that of 2013: only one out of the 20 buyers increased the prices, Oosterom said.
Every time the international retailers put pressure on the manufacturers to comply with their rules, they should also be mindful of the rates they offer the factory owners, said Mohammad Abdul Momen, director of the Bangladesh Garment Manufacturers and Exporters Association.
"There is an imbalance in the negotiation table. We are fearful of losing work orders."
When every consumer of the Western world expresses concern about the environment and sustainability then how can the retailers offer to source garment items at such low rates. "The price they offer is even lower than a cup of coffee," he added.
The pressure is always put on the wage of the workers in this tug of price war between the factory management and the retailers, said KI Hossain, president of the Bangladesh Garment Buying House Association.
Consumers always think about the cheaper prices and brands always think about profit, leaving suppliers with no room to make profits, he added.
"It is unfortunate that there are no better buying practices although there are so many better manufacturing practices," said Mohammad Hatem, first vice-president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA).

Tariff
Add Rate

News Archive

Inside The New Nation

City »

BNP Secretary General Mirza Fakhrul Islam Alamgir, among others, at a rally of professionals in front of the Jatiya Press Club on Tuesday demanding unconditional release of BNP Chief Begum Khaleda Zia.


Football »

Michael Brentan (front) of Italy looks to break past Pedro Lucas (center) of Brazil and Daniel Cabral (right) of Brazil during the FIFA U-17 World Cup quarter-final match between Italy and Brazil at the Olympic Stadium Goiania in Goiania, Brazil on Monday.


Football »

Ronaldo's fitness and attitude both under the spotlight


Cristiano Ronaldo's fitness and attitude has come under the spotlight after he reacted angrily to being substituted during Juventus' win over AC Milan and coach Maurizio Sarri said the 34-year-old had been nursing a knee injury for some time.Ronaldo now faces two matches with Portugal where he will want to ...

Editorial »

An innocent`s imprisonment


AFTER 27 days of imprisonment being wrongfully arrested by police, 19-year-old Rajan walked out on Monday. Police arrested Rajan Bhuiyan instead of Habibullah Rajan from the same village Gopalnagar, Brammanpara of Cumilla. The Dhaka Speedy Trial Tribunal ordered the Dhaka Central Jail authorities to set Rajan free. The tribunal also ...

Business & Economy »

Md. Monzur Mofiz, AMD of ONE Bank Limited, inaugurating its Banking Booth at Basundia crossing at Jashore sadar recently. High officials of the bank, Rezaul Islam Khan Russel, local Union Parishad Chairman and elites were also present.


Entertainment »

When Koushani shot daring scenes 180 feet deep inside a mine


Koushani Mukherjee who had to shoot some daring action sequences in her recently released 'Jaanbaaz' says despite the tough scenes she didn't use any dummy. "I didn't use a dummy. I gave my 100 per cent to the action scenes. It was over 40°C there and to add to our ...

Entertainment »

Kashmira Pardeshi to pair up with Bobby Simha


We had earlier reported that actor Bobby Simha will be playing the lead in an untitled film directed by debutant Ramanan Purushothama. The latest is that actress Kashmira Pardeshi, who made her debut in Tamil, in Sivappu Manjal Pachai opposite GV Prakash has been roped in played the female lead ...

Editorial »

Save the Sundarbans, it will protect us


THE Sundarbans, now most neglected world's largest mangrove forest, again has protected the country from the mighty storm 'Bulbul'. Not only the Bangladesh, the Sundarbans this time has also saved neighbouring India's West Bengal from an obvious deadly disaster.  The forest, renowned for its selfless deeds from the prehistoric time, ...

Entertainment »

Ananya Panday shines bright on cover of magazine


Ananya Panday is creating waves ever since her debut. The actress is shining bright on the November issue of a leading magazine. Earlier today, the new song from her upcoming movie was released and we can't stop grooving to the tunes! Brides Today magazine took to their social media to ...

Football »

Messi will stay at Barcelona for another five years


Barcelona president Josep Maria Bartomeu has insisted talisman Lionel Messi could remain at the Nou Camp for at least another five years.The Argentinian is under contract until 2021 but has a clause inserted in his deal which could see him leave the Nou Camp for nothing in the summer.And although ...

Football »

Messi will stay at Barcelona for another five years


Barcelona president Josep Maria Bartomeu has insisted talisman Lionel Messi could remain at the Nou Camp for at least another five years.The Argentinian is under contract until 2021 but has a clause inserted in his deal which could see him leave the Nou Camp for nothing in the summer.And although ...

International »

Jordan retakes lands leased by Israel in 1994 peace accord


AP, Amman :Jordan's King announced Sunday that his country is retaking "full sovereignty" over two pieces of land leased by Israel, reflecting the cool relations between the neighboring countries as they mark the 25th anniversary of their landmark peace deal.King Abdullah II had said last year that he wouldn't renew ...

Entertainment »

'Fearless' Charlize Theron honored by Hollywood


Charlize Theron was honored by Hollywood Friday for a "fearless" career in which she tackled themesincluding sexual harassment long before the #MeToo movement up-ended the industry.The 44-year-old South African Oscar-winner, who has often played down her flawless looks to win darker, more complex parts, collected the prestigious American Cinematheque Award ...

Entertainment »

Jaya Ahsan’s film 'Konttho' hits theatres


Entertainment Desk :After a successful run in West Bengal, Indian Bangla film Konttho, which stars Jaya Ahsan released in Bangladeshi theatres yesterday. The film is screening in 20 theatres across Bangladesh.Konttho has been jointly directed by Nandita Roy and Shiboprosad Mukherjee. The story of the film is inspired from the ...

Editorial »

River grabbing causing both ecological and economic harm


WHAT was once considered encroachment of rivers has become outright plunder of our riverine resources. But the seriousness of the crime has done little to deter a carnival of corruption plaguing river management. Despite an intervention by the High Court, the scenario has hardly changed.In response to a public interest ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news