Cryptic crossword clue
Cloth handbag at first could be ranked most important

The most common and most likely answer to this crossword clue is the 12 letter word HANDKERCHIEF

I've seen this crossword clue in The Guardian
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Buddy explains!

The straight part
We know that "Cloth" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case cloth = handkerchief.
The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.
This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.

What does HANDKERCHIEF mean?

HANDKERCHIEF noun
  1. A piece of cloth, usually square and often fine and elegant, carried for wiping the face, eyes, nose or hands.
  2. A piece of cloth shaped like a handkerchief to be worn about the neck; a neckerchief or neckcloth.

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