Easier Imports From Bangladesh To Make Garment 20% Cheaper.

Easier imports from Bangladesh to make garment 20% cheaperAHMEDABAD: Summer of 2012 will bring a respite to the Indian consumer reeling under steep hike of garment prices. With India likely to liberalise apparel imports from Bangladesh, cotton garments, that pinched consumers with a 35% rise in a year, might suddenly look cheaper if supplies from the neighbourhood, priced at least 20% lower, flood the retail shelves in India.

India currently allows import 15 million pieces from Bangladesh duty-free and could further allow unlimited imports after removing 48 items from negative list (items that do not attract tariff concessions).

The predominantly export-oriented Bangladesh apparel industry has developed a knack for stitching garments for the suave European and American consumer and is expected to click with the Indian consumer too.

"Clothes from Bangladesh are cheaper by at least 20% than India. Consumers should expect stagnation in garment prices by February 2012 when imports from Bangladesh move into the Indian retail space," says Rahul Mehta, MD of Creative Garments that owns brand 109* F.

The brand is currently 25% more expensive than last year, thanks to cotton prices that hiked to record 75% during the period. Supplying garments to domestic retailers and brands, the company has already placed orders with Bangladesh.

The industry believes that established brands and retailers might eventually shift majority of their manufacturing to Bangladesh and route garments back to India through the duty-free route if the Centre's decision comes through.

Retailers and brands, aggressive in 2011, hit a roadblock owing to abnormal rise in cotton prices. They can source cheap from Bangladesh. "Those who wanted to grow 25% saw a stunted rise of 8-10% owing to poor consumer sentiment, resulting from steep prices.

With removal of duty restrictions on Bangladesh imports, retailers will have a lot to cheer. Consumers too should be happy with internationally-acceptable garments coming from Bangladesh," adds Mafatlal Denim MD Rajiv Dayal.

Bangladesh is known to have a "good needle". No garment would have threads coming out of a button hole or have imperfectly aligned stripes. "They are just perfect and have the capacities to support huge volumes as per styles.

Source : economictimes.indiatimes.com