Home / Knowledge / News / Textiles / Finance Minister promises to address textile industry's woes
Finance Minister promises to address textile industry's woes
Sep '11
Bangladesh Finance Minister AMA Muhith has promised the ailing textile mills of the country that the Government would raise their cash incentives that they get on sales.

Uncertainty in international cotton prices and relaxation of Rules of Origin (RoO) by the European Union has hard hit the textile mills, which are witnessing a fall in their sales turnover over the past few months.

The Minister met representatives of Bangladesh Garment Manufacturers and Exporters Association (BGMEA), Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and Bangladesh Textile Mills Association (BTMA).

Members of the three associations contribute to around 80 percent of the country's overall exports and around 30 percent of imports.

The three associations sought a ten percent rise in current cash incentives that they get on their sales, and demanded that it should be hiked to 15 percent from the present five percent.

The Minister assured the textile millers and garment producers that the Government would consider increasing cash incentives on sales in order to pull them out of the ongoing adversities.

Mr. Muhith said that the majority of the demands raised by the textile industry were legitimate and the Government would adopt a sympathetic view in considering these demands as the sector is currently confronted with several issues.

He said that after consulting the other ministries an immediate solution will be worked out to address the issues of the sector, after the Eid holidays.

Leaders of the three associations raised a demand for several stimulus benefits from the Finance Ministry which includes a demand for capping yarn (up to 60 counts) imports for six months and conversion of textile mills' working capital loans into term loans.

BTMA President Jahangir Alamin stated, if a substantial rise is not granted in the cash incentive, majority of the 300 textile and spinning mills in the country would be compelled to close down as it would become impossible for them to withstand competition from low cost import of yarn from countries like China, India and Pakistan.

Fibre2fashion News Desk - India

Must ReadView All

Courtesy: Fancycrave.com from Pexels

Apparel/Garments | On 22nd Jun 2018

EU's retaliatory duty on US apparel takes effect

As part of the three-pronged response outlined by the European...

NCC applauds House passage of farm legislation

Textiles | On 22nd Jun 2018

NCC applauds House passage of farm legislation

The National Cotton Council (NCC) of the US has welcomed the passage...

Courtesy: Roman Pohorecki from Pexels

Apparel/Garments | On 22nd Jun 2018

UK launches inquiry on sustainability of fashion industry

The Environmental Audit Committee of the UK Parliament has launched...

Interviews View All

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Mukesh Agarwal & Rajesh Agarwal
Madhuram Fincap Pvt Ltd

Increasing prices and lack of demand main issues facing industry

Jim Desai
Blaiva Fabricaa

Fashion industry likely to remain labour-intensive in coming years

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Kamal Kulshreshth

Colorjet is among the fastest-growing wide format digital inkjet print...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Kevin Nelson

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Anisha Chaudhari
Threads & Shirts

Threads &amp; Shirts is a freshly-tailored concept providing men/women a...

Sanjukta Dutta
Sanjukta's Studio

<b>Sanjukta Dutta</b> creates unique garments by clubbing prints of...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies


Leave your Comments

June 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category

Related Categories:

Advanced Search