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Burden of bank Loans is an obstacle to the rise in prices in the Garment Industry

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Recently, Md Sala Uddin,Son of Mr Reazuddin,Chairman ASK Apparel & Textile Sourcing & Director Reaz Garments Ltd,Head of Operation,Bunon – a knowledge sharing platform has shared his thoughts with Textile Focus Magazine about the current & upcoming challenges of Bangladesh’s RMG Sector & how to overcome that : The burden of bank loans is an obstacle to the rise in prices in the garment industry. Exporters are not being able to take advantage of the rise in prices. Made in Bangladesh remains the branding of cheap labor. Vietnam, India, and other countries or India are not taking export orders at lower prices, so it seems to me that Bangladesh is under pressure now. Those who are researching this subject may be able to say better.

Two more things put us in serious danger.  Everyone knows how much the price of yarn and fabric has gone up. But buyers are trying to reduce and even succeed on the pretext of not raising a single cent, while bank-ridden garment manufacturers and exporters are running after buyers for orders. Another is those who want to take orders on CFR shipment terms.

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Container charges have increased nearly seven-and-a-half times in the past year and a half, and the connection of the mother vessel has become almost completely uncertain. But buyers are not taking these issues into account.  On the contrary, due to the weakness of our garment manufacturers and exporters, they are also succeeding in ordering purchases by imposing conditions like theirs. These issues should be taken into special consideration by BGMEA and other concerned institutions in the interest of the country and the nation.

There is no doubt that the garment industry will turn around.  But now, a direction is needed. The next five-year master plan for how the garment industry will proceed will have to be coordinated by the Ministry of Commerce, NBR, BGMEA, BKMEA, and Bangladesh Bank.  If we do that by 2025, it will be good for the industry.  So that everyone will follow one rule principle — Everyone should be in one platform one target.

I said this in the light of my experience and it should be done before December 2021.  The rules and regulations are all there but this is the reality that needs to be re-planned.  Now nothing goes well without precise direction.  So, of course, we need a long-term plan for the garments sector.  So that this sector can move forward and the economic and employment development of the country is active.  Many have lost their jobs and will be able to return to work quickly.”

Author: Md Sala Uddin,Son of Mr Reazuddin,Chairman ASK Apparel & Textile Sourcing & Director Reaz Garments Ltd,Head of Operation,Bunon – a knowledge sharing platform.

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