79% buyers yet to increase product price despite RMG wage hike: Forum survey

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. 

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%.