RMG wastage ratio raised to 27%

The government has taken initiative and relaxed rules to increase production and exports of high-end garment items.

Under the initiative, the commerce ministry today increased the wastage ratio for garment makers by 11 percentage points to 27 per cent, as the production of high-value items creates a lot of wastage.

The move comes years after the garment exporters' demand for raising the ratio up to 40 per cent.

Wastage ratio means the permissible amount of wastage in case of goods made from locally-made yarn and fabrics.

The wastage ratio remained the same at 16 per cent since 1998, said Mohammad Hatem, executive president of Bangladesh Knitwear Manufacturers and Exporters Association.

The ratio of wastage of fabrics increased because of a rise in production of complex goods.