http://www.thedailystar.net/newDesign/news-details.php?nid=72585
Breaking new grounds in garment export
Let’s concentrate on the new price calculus to reap benefit
It is with cautious optimism that we greet the news of our garment sector maintaining steady growth in export, pretty much unruffled by the buffetings of global recession. This has been made possible by timely diversification involving addition of some new destinations to our export map. The process began in earnest since mid-2008 with our garment products penetrating Brazil and Mexico markets.
The other relatively new countries on our radar screen are Japan, Russia and South Africa. With a single country exhibition in Japan, participation of local companies in the Moscow Consume-2009 and a demonstrative vigour in South Africa, we may well have bypassed the horror of demand shrinkage in the aftermath of the global financial meltdown.
Therefore, our congratulations on the enterprise of garment manufacturers and exporters, the facilitation measures taken by the export promotion bureau (EPB), and the dynamism of the banking system and ports and custom authorities.
Nevertheless, it is noteworthy that we have had to mark down the prices to avail of the new market opportunities. Here we have some clear cut suggestions to offer before all those concerned with invigoration of our garment exports. We should try to keep our products competitive by redrawing the strategy for pricing. Let’s not forget that the large segment of value addition that we have to provide to garment production through import of raw materials must now be a lighter burden on us because of the falling prices of inputs in the world market. Our diplomatic missions, BGMEA and EPB should adopt a strategy immediately aiming to reduce the cost of shopping inputs in the countries that we import these from. Simultaneously, we must insist on the shipping lines to negotiate best freight rates against the backdrop of free falling oil prices.
Above all, of course, all efforts need to be made to keep industrial peace.
