Fall in apparel export dragging accessories sector down
Accessories and packaging manufacturers demand 5 percent cash incentive for export
Fall in the export of ready-made garments is dragging down with it the apparel accessories and packaging sector.
Packagers and apparel accessories manufacturers demanded government initiatives to elevate them from the crisis.
They made the demand at a press briefing on Monday in Dhaka ahead of the "International Garment Accessories & Packaging Expo 2020."
Keep updated, follow The Business Standard's Google news channel
At least 100 packaging and accessories factories closed down in the last six months, claimed Rafez Alam Chowdhury, former president of the Bangladesh Garments Accessories and Packaging Manufacturers and Exporters Association (BGAPMEA).
On top of that, the association leaders claimed many of their units were not getting new orders owing to compliance issues.
Packaging entrepreneurs said they need 5 percent cash incentive for export like the apparel sector. Moreover, the government should help them in making the production units compliant and environment friendly.
"Most of the production units are small and medium enterprises. Compliance will remain elusive for the total 1,700 factories if the government does not step in," Rafez added.
Apart from this, the entrepreneurs demanded cutting interest rate for bank loans and to ease the bond facility.
Asked whether easing bond facilities would facilitate its misuse, accessories and packaging sector leaders said that they will take action against any accusations of misuse.
The accessories and packaging industry has developed as the associating sector of the ready-made garments in Bangladesh. In the beginning, apparel factories used to import all kinds of accessories and fabrics.
Garments accessories and packaging manufacturers said that currently they are producing nearly 95 percent accessories at home. Meeting the local demand, the packagers exported $7.12 billion in the last fiscal year.
Export of ready-made garments witnessed more than 6 percent fall in the first half of the current fiscal year, also hurting the accessories manufacturers.
Abdul Kader Khan, president of the BGAPMEA, said the situation shows no sign to improve. Now they are suppling various accessories at prices lower than the production costs.
"Although exhibitions are supposed to showcase the accessories and machineries, this year's edition will stress on the ongoing crisis and a solution," he added.
The International Garment Accessories & Packaging Expo-2020 will be held from January 15-18 at the Bashundhara International Convention Center in Dhaka.
The show will be featuring machinery, yarn and fabric, garments accessories and printing and packaging under the same roof.
A total of 450 manufacturers from 24 countries will take part in the exposition. Zakaria Trade and Fair International, ASK Trade and Exhibition and BGAPMEA have jointly organised the event.
