Textile industry has a tough time ahead in world

09 Jan '06

2 min read

Textile industry has a tough time ahead as China and India, the two major competitors for bangladesh are lowering their prices of textile goods in international market.

Addressing the media, M A Awal, President of Bangladesh Textile Mills Association (BTMA) said, China and India offer great deal of incentives in different forms at different stages of their production to their textile and other related industries.

Chinese government offers interest rate of only one percent to the investors in textile industry, and if investors do not repay loan, they get government waiver, said Awal.

Government also provides land at no cost to entrepreneurs that facilitates investment in this sector, said Awal.

Similarly, Indian government encourages cotton growers, textile mill owners and exports at different stages of their business; the government gives about 18 percent incentives, said Awal.

He also added that Bangladeshi textile mills used to get 25 percent incentives in cash due to significant contribution to export earnings until April 2002.

Currently, textile mills in Bangladesh get only 5 percent incentive from its government; with this encouragement, Bangladeshi industry is not able to compete with giant competitors like China and India, regretted Harun-ur-Rashid, Chairman, Asian Textile Mills.

Harun requested the government to introduce previous incentive scheme of 25 percent for the sake of industry.

He also complained that Bangladeshi textile mills could not enter Indian market as they face unfavorable impact of non-tariff and para-tariff barriers.

Dumping policy of China and India has caused loss of Tk 200 million for Asian Textile Mills, said Harun.

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