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    Bangladesh Government Plans To Increase Textile Subsidy Ratio

    2011/9/16 13:52:00 35

    Textile Export Apparel

    In recent months, the fluctuation of international cotton prices and Europe and the United States market The weak demand for Bangladesh's textile industry has caused a serious blow, resulting in a downward trend in its sales. To alleviate this situation, Bangladesh finance minister Moodie said recently that the government of Bangladesh will increase the subsidy ratio of textile factories with poor operating conditions.


    It is understood that Bangladesh garment manufacturers and Exporters Association (BGMEA), Bangladesh knitwear manufacturing and exporters association (BKMEA) the three associations of Bangladesh Textile Mills Association (BTMA) contribute 80% to Bangladesh's exports each year and contribute 30% to imports. In consultation with Moodie, the association's representative proposed that the Bangladesh government increase the subsidy rate of textile and clothing products by 10%, from the current 5% to 15%.


    Moodie assured textile mills and clothing manufacturers in the country to help textile. clothing To get rid of the current unfavorable situation, the government will consider improving the industry subsidy standard. After consultation with other ministers, a plan will be worked out immediately to solve these problems.


    Previously, the Ministry of finance of Bangladesh has allocated 11 billion Dhaka as a subsidy for the export industry in the first 6 months of this financial year, with the standard rate of subsidy being 5%~20%. Among them, the development of new products and new markets (in addition to the United States, Canada and the European Union) enterprises can receive subsidies of 2%, the textile industry can be subsidized 5% overall, small and medium-sized garment factory 5% additional subsidies.


    According to statistics from the Central Bank of Bangladesh, in the financial year 2010/2011, 16 export industries in Bangladesh totaled 18 billion 400 million Dhaka (1 US dollars to 74 Dhaka) cash subsidy. Among them, the clothing industry subsidies amounted to 87.7 billion Dhaka. Abdus Salam Murshedy, chairman of Bangladesh Exporters Association, said the government expects the export industry to maintain its current growth rate, and the government will increase the subsidy accordingly.

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