Bangladesh’s accessories and packaging industry has started to feel the pinch of the fall in garment orders.

The accessories industry which meets over 90 per cent of the demand from the export-oriented readymade garment sector has been grappling with different issues, including delayed payment, deferred shipments of ready goods and banking complexities.

The drop in work orders for the readymade garment sector means the local accessories and packaging industry will see a decline in work orders too.With the growth in the readymade garment sector, the demand for accessories and packaging products also increased, encouraging many to invest in the industry.

Currently, there are at least 1800 accessories and packaging companies producing more than 25 products including corrugated cartons, poly bags, hangers, elastic buttons, buttons, labels, zippers, hang tags, gum tapes, twill tapes, embroidery and quilting.

The majority of the companies are small and medium in capacity - only some dozens are big in size. Work orders for garment exporters of Bangladesh have decreased by 30 per cent to 40 per cent in recent months. Buyers want shipments to be deferred citing huge inventory as demand has declined in western markets mainly because of high inflation and fuel prices induced by the Russia-Ukraine war.