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: BGMEA

Apparel/Garments | On 27th Feb 2017

'Brands & buyers should help Bangladeshi factory owners'

Brands and buyers should come forward to help factory owners in...

Apparel/Garments | On 27th Feb 2017

Myanmar sets up new committee to revise minimum wage

The Government of Myanmar has set up a new committee, replacing an...

Courtesy: PT Indonesia Taroko Textile

Textiles | On 27th Feb 2017

Taiwan's Lealea to buy Tarako textile plant in Indonesia

Taiwan based textile manufacturer Lealea Enterprise Company, one of...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Rajiv Sirohi

‘Portugal is taking away a major share of the mill made sector.’

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Johan Berlin
InvestKonsult Sweden AB

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

Eric Scholler

The Indian market has huge potential in technical textiles, and by far,...

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Ritu Kumar
Label Ritu Kumar

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

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

February 2017

February 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search