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No fewer than 16 people have perished after a huge fire erupted at a apparel factory in Bangladesh, with authorities cautioning that the fatality count could climb.

16 bodies have been recovered but were incinerated impossible to identify, the fire department stated.

Distraught relatives converged outside the four-storey factory in Mirpur, Dhaka on Tuesday in looking for their loved ones still unaccounted for.

The inferno, which started at the factory around noon, was brought under control after multiple hours. But an nearby chemical warehouse remained ablaze, emergency services said.

Until 21:00 local time (15:00 GMT) yesterday, the fire at the chemical warehouse had not been entirely put out, news sources indicated.

Fire department authorities have not determined which of the two buildings caught fire first.

According to eyewitnesses, the chemical warehouse stored chemical bleaching agents, plastic and hydrogen peroxide, all of which can accelerate fires. Synthetic materials also releases toxic fumes when ignited.

Law enforcement and armed forces are still trying to locate the operators of the factory and the warehouse, fire service director Mohammad Tajul Islam Chowdhury informed reporters.

An investigation on whether the warehouse was functioning with proper authorization is also ongoing, he noted.

Crying family members stood outside the burned buildings, many of them holding photographs of their unaccounted for relatives.

Among them is a man seeking urgently for his daughter, Farzana Akhter.

"When I was informed of the fire, I hurried to the scene. But I still haven't found her... I just want my child back," he told reporters.

The devastating event has another time highlighted the hazardous conditions affecting Bangladesh's clothing sector, which employs numerous of workers and is a major provider of export earnings for the nation.