The government on Sunday revised the maximum wastage rates upwards for raw materials used in producing readymade garments (RMG) amid opposition from the stakeholders.
The commerce ministry enhanced the maximum wastage rates on basic raw materials (yarn to fabric and to finished products) for producing knitted items namely t-shirts, polo shirts, trousers, shorts, skirts, pyjamas and similar products to 27 per cent.
The rate for sweaters, jumpers, pullovers, cardigans, vests, socks, gloves and similar items has been set at 4.0 per cent.
The government, however, has fixed the highest 30 per cent wastage rate on special items, creating a new category, namely rompers, tank tops, dresses, gowns, hoodies, lingerie and similar products.
The commerce ministry on Sunday issued an order to this effect.
The government in 1998 set the maximum 16 per cent wastage rate in producing RMG items from raw materials-yarn to fabric at 7.0 per cent and fabric to finished goods at 9.0 per cent.
When asked, Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) Executive President Mohammad Hatem rejected the revised rates terming them 'not realistic'.
The government took the decision by non-technical people without taking the real scenario into consideration, he complained. Commerce ministry formed a committee to scrutinise their demands and visited some six factories that are most efficient and produce less wastage, he said.
During their visits, the committee found wastage rates ranging from 35 per cent to 50 per cent for some special items, he claimed, raising question how the committee recommended 25 per cent to 28 per cent wastage rates.
Regarding polo items, he said there are a good number of varieties in polo shirts and the 27 per cent rate is not acceptable.
Besides, the order will be implemented immediately putting the previous audit issues into further complexity.
The government should also issue specific instructions regarding the pending audits that the exporters have been facing harassment for a long time due to the 16 per cent wastage rate.
Earlier, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA) repeatedly demanded the government to revise the wastage rates upward to 40 per cent.
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