Mohiuddin Rubel former director of BGMEA
Recent data from the United States (January–September 2024) and the European Union (January–August 2024) reveal a significant decline in the prices paid for Bangladeshi apparel imports. This downward trend raises serious questions about the sustainability of current industry practices and pricing structures.
The issue of purchasing practices has been widely discussed in recent years, with numerous initiatives established to address it. However, these efforts beg the question: are they truly driving meaningful change?
Over the past five years, production costs in Bangladesh’s garment sector have surged by an estimated 50%. This sharp increase is driven by a combination of factors, including rising wages, escalating utility costs, and a dramatic rise in raw material prices. Additionally, soaring airfreight charges and higher bank interest rates have added further financial strain. For garment manufacturers, balancing these increasing operational costs while remaining competitive has become an ever-growing challenge.
Despite these pressures, Bangladesh has emerged as a leader in sustainability efforts within the global apparel industry. However, achieving long-term success requires collaboration across the entire supply chain. Buyers, manufacturers, and stakeholders must work together to align expectations, ensuring that responsible business practices are adequately reflected in pricing structures.
The garment industry stands at a critical juncture, with the opportunity to create a brighter and more sustainable future. By addressing challenges holistically and fostering collaborative partnerships, the industry can pave the way for a system where sustainability and fair compensation coexist—unlocking shared growth and success for all involved.
