REFAYET ULLAH MIRDHA

In recent months, Bangladesh’s garment shipments to major markets such as the European Union (EU) and the US have rebounded strongly, but the price per unit has declined.

International clothing retailers and brands consistently pressure local suppliers to lower prices, even while paying higher rates for sourcing garments from other countries.

For instance, in January this year, the unit price of garments shipped from Bangladesh to the US decreased by 2.20 percent, according to data from the Office of Textiles and Apparel (OTEXA) of the US. However, the value of exports grew by 45.93 percent year-on-year in January, reaching $799.65 million.

In January, the volume of exports to the US increased by 49.21 percent from Bangladesh, 17.05 percent from Vietnam, 9.36 percent from China, and 18.49 percent globally.

Similarly, the unit price of locally made garments shipped to the EU decreased by 4.84 percent in the January–December period last year, according to the latest data from Eurostat, the statistical office of the bloc.

Bangladesh’s garment exports to the EU grew by 4.86 percent to $19.77 billion last year. By volume, exports increased by 10.18 percent in the same period, while China recorded a rise of 12.05 percent. The EU’s total apparel imports grew by 8.98 percent.

The unit price of the EU’s global apparel imports fell by 6.83 percent, significantly influenced by China’s 8.43 percent price reduction. Price cuts by Vietnam and Cambodia were also notable.

A free trade agreement (FTA) between the EU and Vietnam, in effect since 2021, has granted Vietnam the preferential benefit of a gradual removal of tariffs, exporters said.

Historically, Bangladeshi garment exporters have received lower prices than those in competing countries.

“The overall price of garment items traded globally declined last year and continues to do so this year,” said Faruque Hassan, managing director of Giant Group and a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).

This decline is due to a drop in the prices of raw materials such as cotton, yarn, fabrics, and freight charges, he added.