Dhaka, Bangladesh (BBN)– Prices of readymade garment (RMG) products are declining continuously in the global market mainly due to fragile global economy, especially in the United States and the European Union (UE), exporters said.
“Global economic recession and high rate of unemployment are mainly responsible for low price of RMG goods,” Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Shafiul Islam Mohiuddin said, adding that the buyers are cutting price in one hand and on the other they are decreasing there buying orders due to global meltdown.
The BGMEA chief expressed his concern that the RMG price could decline further in near future, if the meltdown continues.
In last one year the price of knitwear products fell at least by 15 to 20 per cent. In 2011 a T-shirt was sold at $1.80, but now it is sold at $1.05, according to BGMEA research cell.
The same condition is prevailing in the woven sector. In last one year the price of woven products fell by 10 per cent. The price of a shirt is now $5.20, which was $6.00 a year back.
Last month a trouser was sold at $8.80, which was $10 a year ago.
Business insiders said last year the price of a sweater was $6.00 but buyers are now quoting the price of a sweater at $5.50.
Exporters said that they have to sell their products at lower prices incurring huge losses only to survive in the industry.
BBN/SSR/AD-22Nov12-4:28 pm (BST)
