Cash subsidy on 14 products for current fiscal announced

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FE Report
The government has announced a new list of 14 exportable products that would receive cash subsidy.
The exporters will receive cash subsidy on the products against net repatriation of the FoB (free on board) prices from July 1, 2007 to June 30, 2008.
The Bangladesh Bank (BB) has already issued a circular in this connection and asked the commercial banks to follow the provisions for providing cash subsidy on the exportable products.
The government will provide 20 per cent cash incentive for exporting the agro-products, including vegetables and fruits, while it is 15 per cent for leather goods, according to the BB's circular.
The agriculture sector has already been identified as a priority sector to alleviate poverty through creation of employment opportunities in the rural areas. The government has taken a series of steps to facilitate the growth of the sector.
Cash subsidy on home made textile, frozen foods, bone dust, tobacco, jute goods, potato, bye-cycle, light engineering products, day-old chicks and halal meat will be given at 5.0 per cent, 10 per cent, 15 per cent, 10 per cent, 7.50 per cent, 10 per cent, 15 per cent, 10 per cent, 15 per cent and 20 per cent respectively.
The products, which are made of 'hogla', 'khra' and 'akher sobra', will be offered cash incentive at 15 per cent to 20 per cent while 20 per cent for liquid glucose.
"We have issued the circular in line with the government decision," a BB senior official told the FE Saturday, adding that the central bank is monitoring the overall disbursement process of the subsidy to the exporters.
He also said the banks will have to comply with the existing provisions properly to pay such subsidy to the exports.