We’re still struggling with price: BGMEA president

Manufacturers are still struggling with prices despite a recent rise in export prices of readymade garments, said Faruque Hassan, president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

"While we are taking all these positive steps towards making manufacturing safer and sustainable, we are still struggling with price," he said at the inaugural ceremony of the third Bangladesh Apparel Forum in the capital on Tuesday.

"Even though prices are slightly better now, we have to keep in mind our overall production cost has gone up more than 30% in the last five years," he added.

At the programme, Atiqul Islam, mayor of Dhaka North City Corporation and former president of the BGMEA, emphasised the issue of getting a fair price.

"Sustainable prices are needed in the interest of a sustainable supply chain," he said, and called on the international community, including buyers and brands, to come forward to make it happen.

Apart from garment exporters, brands, and labour representatives, international apparel stakeholders also spoke in the various plenary sessions of the day-long event.

More than 50 speakers from over 20 countries participated in the 3rd edition of the Sustainable Apparel Forum (SAF) organised by Bangladesh Apparel Exchange (BAE) partnering with the BGMEA.    

At this time, the issue of a fair price for readymade garments came up in several more speeches, including those of labour leaders. Labour representatives urged Bangladesh's exporters to be strict in raising prices and also to ensure fair wages for their workers.

BGMEA President Faruque Hassan said, "Our factories are increasingly investing money for safety and sustainability."

"It is an uphill struggle for us. Despite that, we are moving forward with positive steps while taking the challenge of remaining competitive," he added.

At the same event, the issue of the Unified Code of Conduct was specifically raised by all buyers and countries in compliance with various social audits and global factory norms.

The European Union (EU) recently started talks on due diligence and the state of New York in the United States has also presented a bill along similar lines.

They called for the implementation of a uniform policy, saying that different rules in each country were creating additional pressure on exporters.

Highlighting the due diligence issue, BGMEA's president said, "You will be surprised to know how many audits imposed by multiple brands and international organisations are happening every day in our factories."

"Multiple audits do not only cause audit fatigue among manufacturers, but it is also financially unstable. Over the years, we have been calling for a universal Code of Conduct, but unfortunately, very little light is being shed on this particular issue," he added.  

Faruque Hassan said, "I request brands and buyers to look into a cumulative audit process as it will be beneficial for both parties."

In a plenary session titled "Purchasing Practice", Nazma Akhter, president of the Sommilito Garment Sramik Federation, highlighted how a segment of foreign buyers and factory owners did not stand by workers during the Covid pandemic.

She called for exporters to be more stringent in order to ensure a fair price for readymade garments.

Addressing factory owners and buyers, she said they do charity, but do not want to give workers a share of the profits.

"We don't want charity. We want fair pay," she added.

Nazma Akhter also urged local and international parties concerned in the arena to get past the concept of cheap labour.

Anne Van Leeuwen, the Dutch ambassador to Bangladesh, Stephanie Thiers-Ratcliffe, director of European brands and retailers, Cotton Council International, and Mohiuddin Rubel, managing director of the Bangladesh Apparel Exchange, among others, spoke at the opening session.

At least 50 world class speakers took part in various sessions of the Bangladesh Apparel Exchange throughout the day.

The 12th Bangladesh Denim Expo was held in different halls of the International Convention City Bashundhara. The two-day expo ends on Wednesday.