RMG sector yet to receive fruits of stimuli package

12 Apr '10

2 min read

The government after a lot of stalling had announced a stimulus package for the export industry, which includes the highest export revenue generator; ready made garments, but according to sources from the sector, they are yet to receive the benefits of the package. mong many incentives, the government had announced a five percent cash incentive, for apparel exports to new destinations, except US, European Union and Canada, for a span of three years. Spinners will receive this facility in case of direct yarn exports.

The government had also decided to give special benefits to small and medium enterprises (SMEs). As per the stimulus measure, companies which exported up to $3.5 million in FY2008-09 will be brought under the SME category. It had also offered a facility of extension of bank loan re-scheduling without any down payment up to June 30, 2010 from October 2009, at 10 percent interest instead of the current 13 percent.

To get more details, fibre2fashion spoke exclusively to Mr Md. Fazlul Hoque, President of Bangladesh Knitwear Manufacturers and Exporters Association, who said, “Though Bangladesh garments sector has not yet being directly facilitated with any component of the declared stimulus package, the knitwear manufacturers are trying hard to keep their competitiveness in international market.

He added by saying, “The sector has not yet received support in the form of stimulus package from the government. Bangladesh knitwear sector is going through a period of negative growth in recent days and is also facing a hard time due to energy crisis. However, the response from new buyers and from existing clients is very good and we believe to recover soon from the crisis and enjoy double digit growth."

Fibre2fashion News Desk - India

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