Dhaka re-fixes RMG wastage rates, but manufacturers want more

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. 

For the first time, the authorities have also created separate categories and set a wastage rate for the above items.

The ministry has also refixed the highest rate to 32 per cent on special items like rompers, tank tops, dresses, gowns, hoodies, lingerie and similar products, which had been fixed at 30 per cent in December, according to Bangla media reports.

BKMEA executive chairman Mohammad Hatem welcomed the refixed rates, saying the previously fixed ones were ‘disappointing and concerning’. But even the new rates have room for improvement for some items, especially for fashionable and value-added items where the wastage rates are higher due to different processing methods, he added.

The government set a maximum 16 per cent wastage rate for producing apparel items in 1998. It revised the maximum wastage rates to 27 per cent for basic items, 30 per cent for specialised items and 4 per cent for sweaters and socks on December 19 last year.

Fibre2Fashion News Desk (DS)