79% buyers yet to increase product price despite RMG wage hike: Forum survey
Besides, only 3% of buyers have increased product prices up to 5%, shows the survey report unveiled today at a club in the capital.
Over 79% 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 Forum, a panel of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has revealed.
Besides, only 3% of buyers have increased product prices up to 5%, shows the survey report unveiled today 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.
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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% of RMG buyers increased product prices by 1%; 6% of buyers increased by 2%; 3% of buyers increased by 3%; and 4.5% of buyers increased by 4%.
In 2023, 32.8% of apparel manufacturers said their customs and bond expenses increased by 26-50% year-on-year.
On average, the RMG factories' produced 27.5% below capacity due to lack of orders last year.
The RMG owners also said on average, their factories received orders for the next four months equivalent to 62.21% of their capacity.
Meanwhile, responding to the survey questions, RMG factory owners said their customs and bond related expenses have gone up by 47.85% within the last year.
However, free on board (FOB) shipping cost decreased to an average 3.9%.
