RMG makers disappointed over new wastage rate


Desk Report: Apparel manufacturers have expressed disappointment over the announcement of the Bangladesh Bank on implementing the new RMG wastage rate, terming the rate as “unreasonable” and “unrealistic”.

Bangladesh Bank asked authorized dealer branches to implement the newly introduced readymade garment (RMG) wastage rate in a circular issued on Sunday. According to the latest decision of the Commerce Ministry, the maximum wastage rates will be 27% for basic items, 30% for specialized items and 4% for sweaters and socks.


This is important for knitwear manufacturers because if the production wastage rate of an export-oriented RMG manufacturer, who enjoys a duty-free facility for raw material imports, is less than the prescribed rate, they sell the excess raw materials in the open market.


We are disappointed with the decision of the Ministry of Commerce. This will hamper the growth of exports. We want at least 35% wastage rate, said, Mohammad Hatem, Executive President, BKMEA.

Earlier, on December 19, the government had revised the maximum wastage rates from 16% to 27% for the production of basic knit items t-shirts, polo shirts, trousers, shorts, skirts, pajamas — as per the recommendation of a committee that the ministry formed a year ago following the requests of the manufacturers.