Garment makers’ body, the Bangladesh Garment Manufacturers and Exporters Association (BGMEA), has sought 4 per cent incentive against apparels items made with imported yarn even as spinners have underlined that such a move would deal a devastating blow to Bangladesh’s textile industry.
As per media reports, even as the BGMEA has written a letter in this direction to the Commerce Minsitry seeking 4 per cent incentives on exportable apparel items made from imported raw materials, spinners have, reportedly, maintained, such a move would mean subsidising foreign companies with public money, which they stated was not desirable.
Meanwhile, speaking to the media, former President of the Bangladesh Textile Mills Association (BTMA) Abdul Hai, reportedly, opined if incentive is given on exports of readymade garments produced from imported yarn, the huge investments that have been made in the country’s textile sector will go in vain and lead to millions of workers losing their jobs.
It may be mentioned here that the Government currently gives a 4 per cent incentive against exports of apparel items made with yarn and fabrics produced in Bangladesh only but as prices of yarn have recently gone up in Bangladesh, garment manufacturers have shown interest in importing yarn from abroad and have sought 4 per cent incentive on apparel items produced from imported yarn.
