Bangladesh’s clothing, accessory, and packaging industries have been badly impacted by the recent surge in raw material costs in the international market. According to industry insiders, the sharp surge in worldwide costs for yarn, kraft paper, polyester, and other accessories has put the local garment sector in jeopardy. They bemoaned that, though the apparel industry was on the mend owing to new work orders, they had yet to recoup from the losses caused by the Covid-19 outbreak in January of last year.
According to the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), the cost of production has grown by 40-50 percent due to higher-priced raw materials imported from abroad. Ink prices have risen to $9-12 per kilogramme from $7 per kg, while chemical prices have risen to $90 per kg from $55 per kg. According to industry sources, while garment costs have dropped, accessory makers are not benefiting. According to industry sources, since garment costs have fallen, accessory makers are not receiving standard pricing for their items.
