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Yarn sector gets cash incentives, thumbs down for RMG
Apr '09
Mr AMA Muhith, Finance Minister
Mr AMA Muhith, Finance Minister
The Finance Minister, Mr AMA Muhith, unveiled the stimulus package for the industrial and agriculture sector and hinted of a cash subsidy for the spinning sector from the package, since they were also deeply affected by the recessionary trends.

Admitting that, the one of the most important sub-sector's had escaped his attention, he said, the spinning sector will also be brought under the stimulus package as the package is flexible and steps will be taken as the situation demands.

Meanwhile, the government announced a Tk 3,424 Crore stimulus package for the industrial and agriculture sectors of the country, which will be spent over the last fiscal of the current fiscal and also includes an additional Tk 450 Crore for affected export industries.

Mr Muhith also announced an increase in cash incentive by 2.5 percent which will be paid to those exporting from the jute, jute products, leather and its goods and frozen foods in the period April-June 2009.

From amongst the exporting sectors, jute and jute-made goods will see cash incentives grow to 10 percent from 7.5 percent, leather and leather products to 17.5 percent from existing 15 percent and frozen foods to 12.5 percent from 10 percent.

Of the Tk 3,424 Crore stimulus package, Tk 450 Crore will be spent on cash subsidies to exporters, Tk 1,500 Crore on agriculture, Tk 600 Crore on power sector, Tk 500 Crore on agriculture loans and Tk 374 Crore on social security.

However, the biggest export revenue generator, readymade garments has been kept out of the preview of the package. According to the minister, the sector is not insulated from the adverse effects of the global meltdown, but till date they have not experienced negative growth, so the time is not ripe to for giving them assistance”.

Fibre2fashion News Desk - India

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