The total ban on the exportation of buntal fiber in 1967 had adversely affected the industry. The local hat manufacturers could not absorb all the available fibers resulting to oversupply. As a consequence, there was a substantial reduction in price which caused the extractors to slow down their production activity.

To resolve the situation, the government issued Presidential Decree No. 180 in 1973 which allows only the exportation of buntal fiber upon prior authorization of the President or his duly authorized representative. FIDA also worked for the selective lifting of the export ban on buntal fibers through Executive Order No. 221 which was promulgated in October 1987, authorizing the exportation of certain kinds of buntal fiber and filaments to help maximize its production.

At present, for the buntal sector, the major problems being faced by the processors are the high price of raw fibers and the shrinking and erratic demand of the export market. Due to the high price of raw materials, the price of buntal products becomes uncompetitive, thus limiting the expansion of the local and export markets. Buntal extractors likewise, complain of delayed payments which adversely affected their operating capital.

For the raffia sector, the farmers complained that the prices offered them were improfitable considering that the extraction process is too laborious. Furthermore, some producers cannot meet specifications of buyers as to color and length of fibers, affecting the sustainability of demand for raffia.

Being a material mainly for fashion and novelty items, demand for raffia is also dictated by trends and preferences, hence, instability in market demand is also a problem.