Bangladesh apparel exports are suffering due to rising prices of raw materials in the country. As per Dhaka Tribune, prices of raw materials such as fabrics, yarns, cotton and packaging materials, have risen 5 to 10 per cent in the last couple of months. This is mainly a result of a rise in cotton prices, low productivity caused by the pandemic and a stronger Chinese yuan.

As per SM Khaled, Managing Director, Snowtex, raw material prices are rising every week, adding to manufacturers woes. Besides, importers are ordering more ahead of Chinese New Year holidays in February, leading to further rise in prices. Right now, manufacturers are under pressure to accept orders at lower prices, says Fazlee Shamim Ehsan, owner of Fatullah Apparels. In last three months, cotton prices have increased by 8-10 cent per pound, impacting the prices of yarn, adds Monsoor Ahmed, Secretary, Bangladesh Textile Mills Association (BTMA)

Bangladesh exports mainly five items: T-shirts, sweaters, trousers, jackets and shirts, which together constitute more than 70 per cent of the orders, according to Mostafiz Uddin, Managing Director, Denim Expert. Basic raw materials of these five items are cotton. As Bangladesh does not produce any cotton, an increase in cotton prices will indeed contribute to the rise in the production cost, adds Uddin.

Apparel industry accessory suppliers, who form its backward linkage, have also been sucked into this predicament as the apparel manufacturers are offering lower prices for their product in the face of price squeeze from Western retailers. On the other hand, the increase in raw material prices has left manufacturers in severe trouble and they are incurring huge losses, said Abdul Kader Khan, Managing Director, Khan Accessories and Packaging Company and President, Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).