Bangladesh'S Cash Incentives For Clothing Doubled

Bangladesh's government has increased

The Bangladesh government increased its cash allowance from 5% to 10%, because local spinning mills and weaving mills lost their competitiveness in recent months.

The government of Bangladesh will expand its export incentives for clothing made of local yarns or fabrics.

The sale of yarn and fabric decreased with the decline in cotton prices, and the competitiveness of the spinning and weaving factories in Bangladesh was affected by the EU's spinning rules in January of this year.

At present, the price of the 30 yarns they sell generally reaches 3.5 dollars / kg, and the price is close to 7 dollars a few months ago.

As the EU relaxed its rules of origin, the demand for local fabrics decreased significantly, because local clothing manufacturers preferred to import fabrics and enjoy 12.5% of the tariff benefits provided by the GSP principle of the EU.

The Bangladesh government will provide subsidies to importers who import cotton at high prices between August 2010 and March 2011.