BGMEA President Farooq Hasan has said that the recent increase in the price of fuel oil and diesel by the government will increase the production cost of readymade garments by 5 per cent. He said that in proportion to the rise in oil prices, the cost of transporting goods, power generation through generators and ancillary raw materials and services have gone up. Considering these, the cost of garment production will increase from 4 to 5 percent. Oil prices have already fallen in the world market. Therefore, BGMEA has requested the government to adjust the price of fuel oil.
He said this at a press conference held at a hotel in Gulshan on Saturday. Meet the Press was held at a hotel in the capital to inform about the recent visit of a BGMEA delegation to Europe. Miran Ali, co-president of the organization and other leaders and owners of garment factories were present at the time.
Faruk Hasan, president of the Garment Owners and Exporters Association (BGMEA), said the rise in fuel prices would increase the production cost of the country’s readymade garments sector by 4-5 per cent.
Corona has not created much employment in almost two years. In this situation, business facilitation and policy stability are needed to increase investment and employment. He called for rescheduling of fuel oil to keep the employment and export situation stable.
He said the global economic situation had come to a standstill during the global epidemic. Entrepreneurs held buyers and employees at a loss. He kept some kind of factory running. Our orders in the garment industry declined. You are getting the benefits of that now. Currently buyers are coming, they are placing lots of orders. However, under no circumstances should we negotiate at a price lower than the normal production price. However, even though the work order increased, the price of the product did not increase much. I am working to increase the price of clothes. At the same time, we are telling our members not to take orders for products at any price lower than production. We are getting a slightly higher price than before, but that is very little compared to the increase in production costs.
The BGMEA President urged the international buyers to increase the prices and said that you should be more sensitive about the price of garments.
He said the 36th conference of the International Apparel Federation (IAF) would be held in Dhaka. At the conference, a week-long event was planned with the branding ‘Made in Bangladesh Week’. He said the conference could be held in November next year.
According to BGMEA, BGMEA has always strived for the expansion, promotion and development of the garment industry. As part of this, BGMEA President Farooq Hasan recently visited several European countries, including the United Kingdom. During the visit, he attended the 26th session of the United Nations Conference on Climate Change (COP 26) held in Glasgow, Scotland.
Joining the session, he said, however, that COP 28 and climate change were at the center of the visit. However, during the visit, we had a number of meetings with the relevant stakeholders of the fashion supply chain. I spoke about the role of manufacturers in protecting the interests of the industry and the country and the economy, especially foreign investment and climate change, as well as the responsibilities of international supply chain partners. In the discussion, we highlighted the progress and prospects of our industry over the past decade.