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The Financial Express

BGMEA, BKMEA form joint body to benchmark prices, costs of RMG products

| Updated: January 03, 2022 12:36:38


BGMEA, BKMEA form joint body to benchmark prices, costs of RMG products

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) have formed a joint body for benchmarking the minimum price and manufacturing cost of RMG products.

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 body was formed during a meeting held at the BGMEA office in the city on Saturday, reports UNB.

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 the meeting.

The Committee will endeavour to find empirical facts by consulting with wider stakeholders including yarn, fabric, dyeing, 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 analysis 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 brings an end to unhealthy price competition locally.

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