A committee was jointly formed by the Bangladesh Garment Manufacturers & Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers & Exporters Association (BKMEA) to assess the minimum price and cost of manufacturing RMG products.
A meeting was held at the BGMEA office in the city on Saturday to discuss the issue and 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, Executive Chairman of BKMEA Mohammad Hatem, Vice President Fazlee Shamim Ehsan, Vice President Md. Akhter Hossain Apurbo and Director Imran Kader Turjo attended the meeting.
The 15-member committee headed by BKMEA Vice President Fazlee Shamim Ehsan will conduct an in-depth analysis of the cost of manufacturing, the cost of inputs and the export price of finished products.
The committee will strive to find empirical facts by consulting with broader stakeholders, including manufacturers of yarns, fabrics, dyeing, processing, embroidery / embellishments and accessories to understand the associated costs and their dynamics, including lead time and its impact on the overall cost of manufacturing a garment.
The exercise will also include approaches such as product-specific Standard Minute Value (SMV) analysis as well as production processes and techniques, efficiency and other relevant factors to determine the minimum price and cost of manufacture of RMG products.
The overall goal is to provide a comprehensive and complex picture of the overall cost of manufacturing major clothing items and their minimum price justification.
The committee is expected to submit a detailed report to the boards of directors of the respective associations within the next three months.
This move aims to ensure ethical prices from international retailers and brands and ends unhealthy price competition locally.