Staff Correspondent: A committee has been formed by the Bangladesh Garment Manufacturers & Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) for estimating minimum standard price and manufacturing cost of RMG products.
The meeting was held yesterday at the BGMEA PR office to discuss the issues to form a committee that will fix the benchmark price analyzing all the costs and facts.
The 15-member committee, headed by BKMEA Vice President Mr. Fazlee Shamim Ehsan, will conduct a real evolution of the manufacturing cost, cost of inputs and the export price of the finished goods.
The committee will attempt to analyze the cost of manufacturing, the cost of inputs of the industry and the export value of readymade garments thoroughly. The committee, in consultation with a wide range of stakeholders, including manufacturers of yarns, fabrics, dyeing, processing, embroidery and accessories, will try to find out the relevant costs based on everyone’s experience and the impact of these factors on lead time and overall cost of making a garment.
The initiative will also include approach like analysis of product specific Standard Minute Value (SMV) along with production processes and techniques, efficiency and other relevant factors in determining minimum price and manufacturing cost of RMG products.
The newly formed committee is expected to submit a detailed report to the boards of the concerned associations within the next three months. The move is aimed at ensuring ethical pricing from international retailers and brands and ending unhealthy price competition at the local level.
The move aims to ensure ethical price from international retailers and brands, and bring an end to unhealthy price competition locally.
BGMEA President Mr. Faruque Hassan chaired the meeting which was also attended by BGMEA Vice President Mr. Shahidullah Azim, Vice President Mr. Miran Ali, Director Mr. Asif Ashraf, BKMEA Executive President Mr. Mohammad Hatem, Vice President Mr. Fazlee Shamim Ehsan, Vice President Mr. Md Akhter Hossain Apurbo, and Director Mr. Imran Kader Turjo.