The export price index of Bangladesh-made products, especially garment items, marked a 5.28 percent rise in July, the first month of the current fiscal year, according to the state-run export promotional agency.

However, major exporters do not agree with the increased price index.

Export Promotion Bureau data showed a declining trend in the index almost throughout the last fiscal year.

The price index that started improving since the fag-end of the last fiscal year surpassed 5 percent in July, although the figure is minimal in accordance with the increased costs of doing business.

Better negotiation with international buyers, production of high value-added items and pressure from different international rights groups helped increase Bangladesh-made garments marginally in the international markets, the EPB authorities claimed.

"The rising export-price index indicates that things arc improving gradually," said EPB Vice Chairman Shahab Ullah.

According to the industry, erratic gas and power supplies, higher freight charges, both in local and international markets, the yarn price hike, implementation of the minimum wage for workers, higher transport costs and higher prices of capital machinery were the main reasons for the higher cost of doing business last year.

The cost of doing business in Bangladesh, particularly in the readymade garment sector, increased by 15 percent, as reported in newspapers.

Talking to The Daily Star, senior officials of Opex Group, Standard Group and IRIS Group — some major apparel exporting groups -- said the prices of exportable garment items did not increase, rather in some cases the prices decreased to some extent.

They claimed despite falling prices, manufactures have been able to increase earnings through raising exports volume.

"Actually, the prices of RMG products did not increase. We are making profit through increasing the export volume, not the price," said a senior official of the IRIS Group.

The EPB data showed that at the end of the FY 2007-08 the volume of overall export increased by 14.05 percent.The July export data showed that the overall export volume increased by 65.73 percent from the corresponding period ofFY2007-08.

A major RMG exporter said in 5.28 percent price index the real increase would be less than 1 percent.

"Had the export price index risen to more than 10 percent, the profit margin would have been better," he said.

According to EPB, total exports in July recorded $1,543 billion, which means a 71.01 percent increase from the same period ofthe last fiscal year.

reefat@thedailystar.net