• THURSDAY
  • NOVEMBER 07, 2024
Amazon-like platform to sell garments

BGMEA seeks fund allocation in next budget


  • Industry
  • Bangladesh News Desk
  • Published: 23 Mar 2021, 10:46 AM

The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded fund allocation in the next budget for creating a global platform, like Amazon, eBay and Alibaba, so Bangladesh can export clothes of local brands to the international market.

Such an online platform will help garment manufacturers to deliver products directly to foreign buyers through individual shopping portals.


The BGMEA also wants to sell garments of local brands at the retail level outside the country through the online platform and has sought up to 15pc cash incentive against the exported items.


The demands put forward by the highest body of garment owners also include waiver of interest against loans, fund allocation for health and education of garment workers, incentives to help the sector deal with Covid impacts and 10pc cash incentives for the next 10 years for exporting garments and in recycling textile waste to produce fashion items.

In a budget proposal for the fiscal 2021-22 sent to Finance Minister AHM Mustafa Kamal last week, BGMEA President Rubana Huq said the global market was inclining towards online sales and the ongoing trend indicated a rise in online purchases in future.

"While we are trying to recover from the shock, the second wave disrupted the retail market and demand causing a slowdown in exports and a continued downward pressure on price. This also means underutilisation of capacity leading to increased marginal cost."

The detection of the new strain of the coronavirus and declining retail sales in both the USA and the EU caused the garment sector to lose 2.87pc unit value in 2020. The decline was recorded at 4.26pc between September 2020 and February 2021.

Against this backdrop, the RMG industry needs continued government support along with a number of additional policy assistance for its survival, recovery, growth and sustenance, Rubana said.

Proposal for Tk 100 crore allocation for virtual marketplace

The BGMEA said it had already taken an initiative to open business-to-business and business-to-consumer portals and to implement a project to establish its own platform on the virtual marketplace.

The project requires an allocation of Tk 100 crore in the next budget, it said.

The BGMEA wants an opportunity to send 10pc of the export earnings abroad so that Bangladeshi garment manufacturers can operate outside the country for brand development and marketing.

Moreover, it wants the payment period to be extended to 2 years from 210 days after the shipping of the exportable items to inspire buyers amid Covid-19 to place orders. The BGMEA also demanded that the government allow garment makers to sell products at 50 percent discount.

The top association of apparel makers made separate proposals for retail sales in the international market.

It said the year 2018 saw retail sales worth Tk 533 billion of clothing items globally, which was estimated to grow to Tk 872 billion by 2023. Bangladeshi small and medium garment factories can sustain their business by retailing products at the global market.

In case of online sales, Rubana said the government should provide 5 percent cash incentive for exporting products, 10vpercent cash incentive for exporting products of local design and brands and 15 percent for products made with local fabrics, such as jamdani, muslin and tant.

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