The BGMEA now demands that the government set the wastage rate on raw materials used for making special apparel items at 35 per cent instead of 30 per cent.
The apex apparel trade body's call for an amendment comes following the commerce ministry's new order that took effect last week.
On December 19, the ministry issued a notification revising the maximum wastage rates upwards, but stakeholders immediately protested the new rates that did not meet their expectations.
To press home their demand, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) on December 22 wrote to commerce minister Tipu Munshi.
It demands that the wastage rate for basic knit item be 30 per cent instead of the newly set 27 per cent.
A letter, signed by BGMEA president Faruque Hassan, also seeks no slab-based rate as described in the new order.
In another letter, he also demanded keeping wastage rate for sweater and socks at the previous rate of 16 per cent instead of the newly set 4.0 per cent.
"…the rate is not rational," writes Mr Hassan.
He says the new rate for sweater garments is set without visiting any factory and proper analysis by the rate fixation committee.
"Unless the new order is amended," writes the BGMEA chief, "the sweater garment production and export procedure will be severely hampered."
Sweater garments worth $4.052 billion were exported in fiscal year 2020-21 and the sector is seeing an expected growth every year, he says.
"Unless a rational rate of wastage is fixed for sweater garments, $4.0-$5.0 billion export will face a threat," argues Mr Hassan.
Thus, he apprehends that many sweater factories may become sick and many workers lose jobs.
Earlier, the Bangladesh Knitwear Manufacturers and Exporters Association also strongly opposed the newly fixed rates for garment wastage.
BKMEA executive president Mohammad Hatem also termed the new rates 'not realistic'.
He said the committee visited factories and saw the rates at 35-50 per cent for some special items, but later fixed it at 30 per cent which is not acceptable.
A senior commerce ministry official told the FE that they received a letter from the BGMEA and would send it to the higher authorities for decision.
Based on the new order, he says the central bank has already asked all the dealer banks, involved in foreign currency transactions, to take necessary steps.
"A new rate can be fixed only after the (fixation) committee considers the appeal," he adds.
