Even as garment makers in Bangladesh continue to receive sufficient work orders from the global buyers, profit margins have taken a hit owing to increase in business costs of late, while there’s also apprehensions of resurgence of pandemic-induced crisis as well.
This was, reportedly, underlined by none other than the BGMEA President recently.
Speaking to the media, Faruque Hassan, said, “…we are receiving adequate number of work orders but there is a fear of the resurgence of the crisis in the supply chain,” while adding that the overall cost of production has gone up, affecting profitability adversely.
The BGMEA President, reportedly, further added that despite the percentage increase per unit paid by the buyers, it was not adequate to offset the higher cost of production caused by recent increase in raw materials cost even as he went on to cite examples by maintaining that dyes and chemical prices went up by 40 per cent, yarn prices increased by 60 per cent while on the other hand container freight charge increased 350 per cent to 500 per cent over the past year while electricity charges went up by 13 per cent.
