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BGMEA urges for reviewing of RMG waste depreciation rate

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) stresses that the government set the RMG waste depreciation rate on raw materials used for making special apparel items at 35% instead of 30%.

BGMEA-reviewing-RMG-waste-depreciation-ate
Figure: BGMEA stresses that the government set the RMG waste depreciation rate on raw materials used for making special apparel items at 35% instead of 30%.

The BGMEA now wrote to Commerce Minister Tipu Munshi on December 22. The apex apparel trade body’s call for an adjustment comes after the commerce ministry’s new order that took effect on December 19.

Earlier the ministry reviewed the maximum RMG wastage rates up, but leading trade bodies and stakeholders instantly objected to the new rates that did not meet their anticipations.

The BGMEA letter signed its President Faruque Hassan, also seek out no slab-based rate as labeled in the new order.

Hassan also call for maintaining the wastage rate for sweaters and socks at the previous rate of 16 percent instead of the newly set 4% in another letter.

The BGMEA President stressed that the new rate for sweater garments is fixed without visiting any garment factory and appropriate analysis by the rate fixation committee.

He maintained in the letter that, “Unless the new order is amended the sweater garment production and export procedure will be severely hampered.”

Faruque Hassan draws attention to the fact that sweater garments worth $4.05 billion were exported in the fiscal year 2020-21 and the sweater sector is witnessing a projected growth every year.

“Unless a rational rate of wastage is fixed for sweater garments, $4 to $5 billion export will face a threat,” told Hassan.

Which will ultimately generate many sick sweater factories and a magnitude of workers will lose their jobs.

If anyone has any feedback or input regarding the published news, please contact: info@textiletoday.com.bd

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