Hasina urges garment exporters to drive a hard bargain

Prime Minister Sheikh Hasina has urged exporters to drive a hard bargain over readymade garment exports while pointing to the low prices paid by foreign buyers.

She made the remarks at an event marking the National Textile Day 2019 on Thursday.

“If they (foreign buyers) had paid one dollar more for each garment, we could develop the garment sector in Bangladesh even further,” she said.

“I’m not sure if the exporters go easy on the negotiations fearing the competition in the global market, but I believe they should bargain hard."

Stressing on her initiatives in this regard, Hasina said “I highlight the issue to the governments whenever I travel to the countries where we export the garments. But that is not enough. All you traders should also take the initiative.”

The issue of unfair trade between international brands and Bangladeshi garment-makers came to the fore after the Rana Plaza tragedy in 2013. Some companies were reportedly buying shirt for $5 each from Bangladesh and selling them on for 10 times that price.

Bangladesh is second only to China in terms of exporting readymade garments. It exported readymade garments worth $34.13 billion in the 2018-19 fiscal year -- which accounts for more than 84 percent of the export income.

But a large part of this amount comes from cheap clothing items like shirts, trousers, jackets, tee-shirts and sweaters. Bangladesh still lags behind in the market for expensive and fashionable garments which is a source of greater profits.

The entrepreneurs in the garment sector should focus on expanding the market as well as opting for diversified export products to survive in the competitive global market, according to Hasina.

“There is no demand for a single product forever. Therefore, we need diversified products for the export sector. For readymade garments, demand changes on design and colour over the time. I’m aware that we need to focus on the buyers' preferences but we too should take some initiative to explore new products and markets."

She stressed the need for traders to take up short-, mid- and long-term plans to ensure to remain competitive. "I hope that you would take up new plans and the government will provide all kinds of support," she said.

The government is expecting more investment from home and abroad in the 100 economic zones it is preparing, said the prime minister.

"We have a goal to produce local products using local raw materials and then market them."