Govt fixes 30% wastage ceiling for apparel makers

The government has turned down the apparel makers’ demand for a 40-per cent hike in wastage rate, and set it to maximum 30 per cent from currently 16 per cent.

On January 7, 2020, Bangladesh Garment Manufacturers and Exporters Association (BGMEA) and Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) wrote to the commerce ministry for increasing the wastage rate to 40 per cent.

The apparel manufacturers, especially knitwear and sweaters owners, rejected the government decision, and is planning to send a letter today (Tuesday) to fix the product-wise wastage rate to 35 per cent.

On the other hand, the apex body of readymade garments has also decided to place a demand to the commerce ministry again to allow 12 per cent wastage for sweater, 30 per cent for basic items and 35 per cent for specialised items.

According to the commerce ministry decision, the apparel manufacturers will enjoy 30 per cent wastage rate for specialised items, 27 per cent for basic items and 4 per cent for sweaters and socks.

To take the apparel makers’ wastage hike issue into consideration for the second time, the commerce ministry formed a committee and visited six factories to learn about the actual wastage rate. The probe body recommended increasing the rate. A few months ago, the commerce ministry decided to allow 25 per cent wastage for basic, 28 per cent for specialised items and 3 per cent for sweaters and socks, but the apparel makers opposed it, asking the government to revise the decision.

The industry insiders claimed that they need more wastage allocation compared to the commerce ministry’s decision since sometimes wastage goes around 40 per cent while manufacturing value added products and a large amount of fabric get wasted in dyeing section.

According to the BKMEA, wastage goes around 13 per cent to dye basic items while 16 per cent for dyeing specialised item.

Mohammad Hatem, executive president of the apex body, said, “It is totally an illogical decision and we oppose it. We have prepared a letter to send it to the commerce ministry to review the decision.”

“The commerce ministry officials visited our factories and observed real situation, but they did not allow for the actual rate.”

Mahbubur Rahman Lucky, managing director of Southeast Sweater, said, “It is not possible to make a sweater when wastage goes over 4 per cent. Sometimes, it crosses 14 per cent depending on products.”