Experts sat, the steep rise in prices of yarn, kraft paper, polyester and other accessories in the global market are threatening Bangladesh’s local apparel industry. Experts believe soaring raw material prices in the international market have hit the country's apparel accessories and packaging manufacturers. They lament the recent hike of cotton prices in international market has impacted yarn prices in Bangladesh. Accessories and packaging industry owners are incurring losses as they have to import raw materials at a higher price, but are deprived of a fair price from domestic clients

SM Amzad Hossain, Managing Drector, Al Muslim Accessories, said although RMG exports from the country have increased accessories manufacturers have to sell their products at losses as their domestic buyers are not ready to pay higher prices. Md Arif Hossain, Owner, Bengal Labels and Accessories Industries, added, the rise in raw material prices has increased the cost of production by 40-50 per cent. Abdul Quader Khan, President, BGAPMEA urged the government to offer a 1 per cent cash incentive against exports and reduce corporate tax to 12 per cent for the garment accessories sector in the proposed budget. Syed Nazrul Islam, First Vice President, BGMEA, said, they cannot buy accessories at high prices as they are getting lower prices for RMG items from foreign buyers.