The Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGPMEA) says the country’s garments accessories and packaging sector may incur a loss of Tk 1,200-1,500 crore if import deadlock from China continues for three to four more months. About 40 per cent of raw materials for the sector are procured from China. Importers have suffered losses of over Tk 200 crore due to extension of Chinese New Year holidays. While some of the goods have reached the ports, their documents are missing. In some other cases, there are documents but no goods.

At present, 1,744 registered institutions operate in the garments accessories and packaging sector in Bangladesh. The sector provides employment to over 7.5 lakh people. About 35 types of raw materials, including yarn, fabric, duplex board, white liner, thermoplastic mould, carton, sewing threads, etc, are imported from China.

Companies in the garments accessories also supply raw materials for leather and pharmaceuticals industries alongside the apparel sector, said the association. Moreover, the association member companies cannot import materials as per their will every now and then, which adds to the problem. Even if they find alternative sources, that will add to the cost and time of procurement.