A committee has been jointly formed by the Bangladesh Garment Manufacturers & Exporters Association (BGMEA), and the Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) for benchmarking minimum price and manufacturing cost of RMG products.
A meeting was held at the BGMEA PR office on January 1 to discuss the issue and to form a committee.
BGMEA President Faruque Hassan chaired the meeting which was also attended by BGMEA Vice President Shahidullah Azim, Vice President Miran Ali, Director Asif Ashraf, BKMEA Executive President Mohammad Hatem, Vice President Fazlee Shamim Ehsan, Vice President Md. Akhter Hossain Apurbo, and Director Imran Kader Turjo attended a meeting at the BGMEA PR office on January 1 to discuss about the issue and to form a committee.
The 15-member committee headed by BKMEA Vice President Fazlee Shamim Ehsan will conduct a thorough analysis of the manufacturing cost, cost of inputs and the export price of the finished goods.
The Committee will endeavor to find empirical facts by consulting with wider stakeholders including yarn, fabric, dying, processing, embroidery/embellishment and accessories manufacturers to understand associated costs and their dynamics including the lead-time and its impact on the overall cost of making a garment.
The exercise will also include approaches 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 overall objective is to draw a comprehensive and complex picture of the aggregate manufacturing cost of major garment items and their minimum price justification.
The Committee is expected to submit a detailed report to the Boards of the respective associations within the next three months.
The move aims to ensure ethical prices from international retailers and brands and bring an end to unhealthy price competition locally.