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Cash Rewards For Major Textile Industries In Bangladesh Doubled

2011/9/26 15:37:00 23

In this

fiscal year

Bangladesh doubled its cash prize for textile mills operating in the main textile industry from 5% to 10%, aiming to rescue the textile industry, which is worth 300 billion Taka. Due to the fluctuation of cotton prices in the global market, the EU relaxed its import rules. In recent months, sales of textile industry plummeted and suffered heavy losses.

A senior Treasury official said that about 7 billion Tucca would be taken from the Ministry of public finance in the current fiscal year for the latest cash incentives.

The Ministry of Finance raised its reward last Tuesday.

The Ministry of Finance asked the Bangladesh Bank to pfer short-term bank loans to the debt laden textile factories to maturity debts so as to avoid the textile mills becoming loan delinquents.

The textile mill, including the spinning and weaving plant, is a member of the Bangladesh Textile Mills Association (BTMA). It will be eligible for higher cash awards from July 2011.

However, members of the Bangladesh Textile Mills Association (BTMA), which bought high priced cotton from August 2010 to March 2011, are eligible for the latest improved cash incentives.

In the past 6 months since August 2010, the average price of cotton purchasing will be the basis for determining whether the textile mills purchase cotton at a higher price.

The European Union relaxed its import rules from January this year, and the textile factories were hit hard.

Now, loose rules allow Bangladesh clothing to enter the EU's 27 member countries without tariffs, and the yarn they buy can come from anywhere in the world.

In the past, according to the earlier

European Union

Rules, Bangladesh textile factories enjoy the protected domestic market, and garment manufacturers can only purchase domestic yarns and fabrics before they can enter the European economic community without tariffs.

Ahmed Ali, vice president of Bangladesh Textile Mills Association (BTMA), urged the government to raise at least 15% of the cash award in the form of subsidies, and change the policy of the textile industry, because the labor intensive industry needs protection.

Before loosening the rules of origin for the least developed countries, Bangladesh's main textile sector has been protected for many years, and garment manufacturers must purchase fabrics from their own textile factories before they can enter the EU market without tariffs.

Rules of origin in the European Union

standard

After loosening, compared with the same period last year, imports of garments and woven fabrics increased by 88.34% during the -3 months of January this year, and the import of knitted fabrics increased by 32.35%.