Dhaka urged to review decision to cut cash incentives on RMG exports

05 Feb '24

2 min read

Pic: Adobe Stock

Insights

The Bangladesh government was recently urged by trade bodies to reconsider its decision to cut cash incentives on the shipment of garments and other export-oriented products.
Severe inflation in the US and the EU has led to a decline in apparel exports to major markets and a drop in garment exports affects the country's foreign reserves, the BGMEA said.

Garment and textile trade bodies recently requested the Bangladesh government to continue policy support to maintain the competitiveness of the sector by reconsidering the decision to cut cash incentives on the shipment of garments and other export-oriented products.

A delegation led by Bangladesh Garment Manufacturers and Exporters Association (BGMEA) president Faruque Hassan met finance minister Abul Hassan Mahmood Ali in Dhaka to convey the request.

The delegation comprised senior representatives from the Bangladesh Textile Mills Association, the Bangladesh Knitwear Manufacturers and Exporters Association and the Federation of Bangladesh Chambers of Commerce and Industries.

The meeting, ,attended by senior secretary in the commerce ministry Tapan Kanti Ghosh and finance division secretary Mohammad Khairuzzaman Mozumder, discussed the key issues being faced by the country’s RMG industry, according to domestic media reports.

BGMEA president Faruque Hassan said severe inflation in the United States and the European Union has led to a decline in apparel exports to major markets of Bangladesh.

A decrease in garment exports affects the country’s foreign reserves as the RMG sector accounts for 84 per cent of export earnings, he said.

A new minimum wage for garment workers has been implemented by businesses amid rising prices of energy and raw materials, which is adding to the pressure, he added.

Fibre2Fashion News Desk (DS)

More Bangladesh Garment Manufacturers and Exporters Association (BGMEA). News... More Apparel/Garments News - Bangladesh...