Price squeeze hits Bangladesh factories

DHAKA – 25,000 workers have been laid off in the Bangladeshi ready-made garment (RMG) sector since February amid the closure of 46 factories. Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Dr Rubana Huq claims low and declining prices from international brands is the main reason behind the closures. If this is, indeed, the case it suggests that pressures faced by brands amid a global retail environment many feel is on the cusp of recession is now playing out in supply chains. Huq has also called for more assistance from the government and says RMG exporters “must convince the global customers to [provide a] good price for products.”