Demand withdrawal of decision to reduce cash assistance to exports


Bangladesh Bank has issued a notification on June 30, reducing cash assistance for all types of exports. In this, cash assistance will be reduced to exporters in 43 sectors including ready-made garments, leather, jute, agriculture. Bangladesh Textile Mills Association (BTMA) has demanded the withdrawal of this decision to reduce incentives.

The organization’s president Mohammad Ali Khokon made this demand in a press conference at BTMA office in the capital on Saturday (July 6). BTMA Deputy President Md. Fazlul Haque, Mohammad Faizur Rahman Bhuiyan and other members of the Board of Directors were present.

The organization said that the FE Circular No. 12 issued by Bangladesh Bank should be withdrawn immediately and the cash incentives should be restored. Besides, BTMA has demanded to speedily formulate an up-to-date textile policy for the textile industry and keep a one-year grace period for repayment of bank loans.

In the press conference, Mohammad Ali Khokon said that policy support or incentives are needed to strengthen or sustain any industry, which the developed countries of the world are also providing. Establishing sustainable industries for any country requires strong policy support and incentives. The way cash incentives have been reduced without any alternative measures in our country will reduce capacity in the textile sector.

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He said, due to its effect, the backward linkage industries of this sector will gradually be at risk of being closed. Besides, we will not be able to survive in any way with other countries competing in this sector. If the primary textile is closed due to some reason then the garment industry will also gradually close down. This will cause the country’s economy to collapse.

He further said that India is the second largest producer of cotton in the world and is also second in the world in textile technology. India is currently the 5th largest economy in the world and despite graduating the LDC in 2004, the textile industry has been providing alternative benefits to cash incentives in various ways. In the name of LDC graduation, the incentives and policy support of the textile industry in Bangladesh are being drastically reduced, which will soon bring the industry to the brink of destruction.

The BTMA president said Prime Minister Sheikh Hasina, after coming to power in 1996, had arranged a 25 percent cash incentive against exports for the textile and apparel sector. It has played an important role in the progress of the textile and apparel sector of the country. As a result, export income in this sector has increased from 2 billion to 47 billion dollars.

MRM