Garment manufacturers in Bangladesh on Sunday demanded higher export subsidies from the government, saying proposals in the latest national budget, unveiled last week, were not enough to compensate for higher production costs and low prices. Bangladesh textile industry earns about $30 billion annually by exporting ready made garments, which represents about 16% of the economy and employs over 4 million workers.
But last year, the prices of garments fell 7.4% in the United States market and 3.64% in the European market compared to 2012, according to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA). Manufacturers' costs have been rising, mainly driven by labour costs. Last year, for example, there was a big increase in the minimum wage for Bangladesh garment makers.