The Bangladesh government recently raised the maximum wastage rate for raw materials used to produce apparel following strong disagreement with stakeholders on the earlier rates. Though apparel manufacturers hailed the commerce ministry decision, calling it ‘commendable’, they said opportunities do exist to raise the rate further on some value-added products.
The ministry had previously revised such rates on December 19 last year. However, the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Garments Manufacturers and Exporters Association (BGMEA) strongly disagreed over the rates, and sent a proposal to the ministry, requesting it to increase the maximum wastage rate to 40 per cent.
Representatives of the two trade bodies and the ministry then sat for a meeting on February 9. The ministry then re-fixed the maximum wastage rate for the production of basic knit items—T-shirts, polo shirts, trousers, shorts, skirts, pajamas, and similar products—at 29 per cent, up by 2 per cent from the previous rate.
Apart from the basic items, the authorities also raised the wastage rate for sweaters, socks, jumpers, pullovers, cardigans, vests, gloves and similar items to 16 per cent, which had been fixed at 4 per cent on December 19.
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