Bangladesh is facing the pressure from buyers to deliver cheap apparel. Exporters say they cannot afford to refuse orders and buyers know this and exploit this weakness and mount pressure. The apparel industry is Bangladesh’s single biggest export earner and accounts for about 83 per cent of Bangladesh’s total exports.

But the country’s apparel exporters are hoping retailers and brands pay a fair price for their products. For one, say the exporters, they have spent huge amounts on beefing up workplace safety and that has increased the cost of production by 25 per cent to 30 per cent. Their complaint is that buyers always demand higher compliance at the factory level but do not want to increase the prices of products.

One reason Bangladesh’s exporters do not get fair and reasonable prices is the lack of negotiation skills. Exporters get lower prices for readymade garment products than what Cambodian and Vietnamese exporters from global buyers. Buyers do not want to pay higher prices, although the cost of production will go up further with wage hike, port congestion and higher transportation cost. Factories in Bangladesh that need to relocate have to bear the relocation costs and do not receive financial support from buyers, the government or their industry associations.