Bangladesh gets up to 83% lower price than rivals
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Loading... - Zuthimalin Rahmani
- 13 Oct 2022
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International buyers are consistently paying lower than the global average price to apparel suppliers in Bangladesh but higher to some of the country's competitors, according to the International Trade Centre (ITC).
In fact, local garment manufacturers receive rates that are 32 per cent to 83 per cent lower than the highest prices paid to the suppliers in other countries.
This validates, for the first time, Bangladeshi garment manufacturers' claims about receiving lower prices from global buyers and underscores the importance of moving up the value chain.
In a study report -- The Garment Costing Guide for small firms in value chains – published in August, the ITC said there is a growing argument that customers -- retailers and brands -- should pay their suppliers a fair free-on-board (FOB) price since they are often paying the prices that are below the factory costs.
"The data is clear and many factories have been forced to close because of the lower FOB prices."
"The conclusion is that the fault lies with the customers and therefore, they should be forced to pay a higher FOB price,"
The free-on-board price of exports and imports of goods is the market value of the goods at the point of uniform valuation (the customs frontier of the economy from which they are exported). Read More...
