Bangladesh, the third-biggest garment exporter in the world, is once again pleading for the increased prices of it garment items. At the recently held Trade and Investment Forum Agreement (Ticfa) event, the country demanded for an increase.
The country has had some tough days recently as the workers are also demanding for a major hike in the minimum wages to BDT 16,000. The garment factory owners, however, find the figure unrealistic as it would further increase the cost of doing business.
They (the owners) have thus asked for better prices. Further, the cost to stay compliant has also made it difficult for the manufacturers to operate. However, the western apparel buyers are still not keen on increasing the prices as the demand has gone down in the market, Bangladesh Commerce Ministry mentioned in a statement issued.
Notably, garments account for over 90 percent of Bangladesh’s overall exports. The US is one of its biggest importers. In June 2013, the US suspended the country from any of the trade privileges (like Generalised System of Preferences) due to deprived labour rights and workplace safety issues there. This has further impacted Bangladeshi manufacturers.
If prices are increased, Bangladesh would benefit the most as it will help the country resolve minimum wage issue prevailing at the moment.