Home / Knowledge / News / Textiles / Bangladesh govt supports domestic spinners, weavers
Bangladesh govt supports domestic spinners, weavers
Nov '11
The Bangladesh Government has doubled the cash incentives for garment exports to help the domestic spinners and weavers who have been hit by international cotton market volatility.

The cash subsidy has been raised to 10 percent from the earlier 5 percent to support the spinners and weavers whose competitiveness has badly suffered in past few months due to global cotton market volatility, the Bangladesh Bank said.

However, only the Bangladesh Textile Mills Association (BTMA) members will benefit from the cash incentive, either for overseas export or domestic supply in the current fiscal, according to the central bank.

The cash subsidy would also be made available on export of garments prepared from domestically procured yarn or fabrics. A drop in sales of yarn and fabrics alongside a fall in cotton prices and relaxation in its Rules of Origin (RoO) by the EU in January this year adversely affected the competitiveness of the weavers and spinners in Bangladesh.

The 30-count yarn, which is consumed extensively and which was being sold at around US$ 7 per kg a few months back, is now being sold at almost half the price at around US$ 3.5 per kg, following which the spinners are suffering losses.

RoO relaxations have also resulted in a major fall in demand for domestic fabrics, as domestic garment producers prefer to import fabrics so as to avail the 12.5 percent duty benefit that the Eurozone offers under the Generalized System of Preferences (GSP).

The Government would subsidise those importers who imported expensive cotton during August 2010 to March 2011. Though industry experts see this as a welcome move, they believe that the incentive would not prove sufficient to mitigate the losses suffered by the spinners and the weavers.

Fibre2fashion News Desk - India

Must ReadView All

Apparel/Garments | On 22nd Feb 2017

Amazon UK to create 5,000 full time jobs this year

Amazon UK said it will create more than 5,000 full time jobs this...

Textiles | On 22nd Feb 2017

Telangana CM seeks better life for handloom weavers

Chief minister of Telangana, K Chandrashekhar Rao assured handloom...

Textiles | On 21st Feb 2017

Net profit at Indorama Ventures zooms 145% in 2016

Net profit at Thailand headquartered and Aloke Lohia led Indorama...

Interviews View All

Smith Vaghasia
Sanado India

Online remains the best destination for shopping

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Ritu Kumar
Label Ritu Kumar

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

Pranav Mishra

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

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