BGMEA puts its rice marketing plan on hold
Saturday, 11 April 2009
FE Report
The implementation of the plan of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to sell rice among the garment workers at a reduced price has become uncertain as the association is yet to get any response from the government on its proposal on further price reduction.
The government had fixed the price of the rice for the garment workers at Tk 18 per kg (kilogram) by subsidising Tk 11 per kg last month when its retail price was Tk 25 per kg.
Soon after the government decision on the price subsidy, the owners of the garment factories declared that they would start the OMS operation from the first week of April. But they could not start it as retail price of the rice is going down gradually and has now reached Tk 18-19 per kg.
Under the circumstances, Bangladesh Garment Manufactures and Exporters Association (BGMEA) and Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) have demanded further cut in the price of OMS rice.
Talking to FE, BGMEA second vice-president Mohiuddin Ahmed, who is dealing with the issue on behalf of BGMEA, said the move of OMS programme for garment workers now hangs in balance due to the falling prices of coarse rice in the retail markets.
He said both BGMEA and BKMEA requested the government to further reduce its price to Tk 15 per kg from previously fixed Tk 18 per kg. But they have not received any response from the government.
"The rice price should be further reduced, otherwise, the garment workers will not be interested to purchase the rice from OMS outlets," he added.
Responding to a query, he said the government will inform whether the price will be reduced or not later after a discussion on the issue with the Prime Minister.
Some 541 garment factories have so far shown their interest to run the scheme.
The implementation of the plan of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA) to sell rice among the garment workers at a reduced price has become uncertain as the association is yet to get any response from the government on its proposal on further price reduction.
The government had fixed the price of the rice for the garment workers at Tk 18 per kg (kilogram) by subsidising Tk 11 per kg last month when its retail price was Tk 25 per kg.
Soon after the government decision on the price subsidy, the owners of the garment factories declared that they would start the OMS operation from the first week of April. But they could not start it as retail price of the rice is going down gradually and has now reached Tk 18-19 per kg.
Under the circumstances, Bangladesh Garment Manufactures and Exporters Association (BGMEA) and Bangladesh Knitwear Manufactures and Exporters Association (BKMEA) have demanded further cut in the price of OMS rice.
Talking to FE, BGMEA second vice-president Mohiuddin Ahmed, who is dealing with the issue on behalf of BGMEA, said the move of OMS programme for garment workers now hangs in balance due to the falling prices of coarse rice in the retail markets.
He said both BGMEA and BKMEA requested the government to further reduce its price to Tk 15 per kg from previously fixed Tk 18 per kg. But they have not received any response from the government.
"The rice price should be further reduced, otherwise, the garment workers will not be interested to purchase the rice from OMS outlets," he added.
Responding to a query, he said the government will inform whether the price will be reduced or not later after a discussion on the issue with the Prime Minister.
Some 541 garment factories have so far shown their interest to run the scheme.