BTMA urges govt to extend usance period

FE Report

Bangladesh Textile Mills Association (BTMA) has urged the interim government to extend the usance period for payment on imports of industrial raw materials.

In a letter to the governor of Bangladesh Bank on January 13, the BTMA-the trade body for the country's primary textile millers-made the plea saying that the export-oriented textile industry is facing various problems because of the expiry of a central bank circular.

Citing the circular, the letter said the period for payment on imports of industrial raw materials was extended from 180 days to 360 days maintaining the arrangement until December 31, 2024 to facilitate import and export.

In foreign trade, usance is the allowable period of time, permitted by the customs, between the issuance of a bill and its payment.

BTMA Secretary General Md Zakir Hossain, who signed the letter, said export-oriented textile mills have faced exchange rate losses while importing raw materials as taka devaluated against foreign currencies due to a number of reasons, including global recession caused by Russia-Ukraine war and others.

Besides, mills cannot utilize their full capacity because of shortage of gas and electricity supply, hikes in gas prices and workers' wages, recent political turmoil and labour unrest, it said.

The letter further said that the BTMA, an association of 1850 primary textile mills including spinning, weaving and dyeing printing-finishing, has invested around US$ 22 billion.

Given the current challenges, the BTMA emphasised the urgent need to extend the credit period for the payment of imported industrial raw materials and requested necessary measures from the authorities.

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