Bangladesh’s garment accessories sector is struggling. While prices of raw materials for garment accessories have increased by about 15 to 20 per cent, prices of finished products have declined by about 10 per cent. Buyers of garment accessories, usually readymade garment makers, are offering low prices as prices of apparel products have also declined in the global market over the last few years.
During January to July, prices of apparel products on an average saw a six per cent decline while their production cost increased by 18 per cent. Prices of garment products have declined by 4.31 per cent in the European market and 3.5 per cent in the US market over the last six months.
When garment makers face a price cut from their global buyers, they adjust prices by reducing the cost of production through cost cutting from fabrics, accessories and other heads. The country’s accessories sector failed to do any value addition to the industry last year although it made around 30 per cent value addition to products in the previous year. But it saves huge foreign currency by providing essential accessories to the readymade garment sector, the highest foreign exchange earner. The sector meets up to 95 per cent of the requirement of the country’s garment sector.