BTMA demands cash incentives at previous rates

FE Report
Bangladesh Textile Mills Association (BTMA) on Saturday demanded putting the government-provided benefits for the country's textile industry back into effect as the basis for slashing it by a half was not appropriate.
The trade body alleged that the incentive to the backward linkage industry has been cut based on an inflated export growth and termed it a 'conspiracy' against the sector.
The 50 per cent cut in cash incentive would severely affect the industry amid other challenges like poor gas supply, a 250-percent hike in gas prices, high bank interest rate and wage hike, it said, demanding withdrawal of the fiscal measure.
"Reducing cash incentive at a time when the industry has been facing a number of challenges would halt the progress, potentially leading to ruining the industry like that of the jute sector," BTMA President Md Ali Khokon told a press conference in the city.
He alleged that the BTMA raised the issue of data mismatch at a meeting of Bangladesh Bank only to get a scolding by the governor who insisted that they (exporters/textile millers) were claiming a lower growth rate.
"Now that it has been revealed the export growth was lower indeed," he said.
On Wednesday last, the central bank revised the country's export-earnings data down by over US$ 12 billion until March 2024.
The BTMA leader also pointed out that the cash incentives have been reduced on the excuse of preparing the industry to be able to face the post-graduation challenges, but there are still two and a half years until November 2026 when Bangladesh will graduate from the least developed country status.
On top of the time left, the country will get three more years until 2029 as a grace period to prepare for the trade regime free of concessions, he mentioned.
Citing an example, he said India graduated in 2004 but has been providing a number of policy support and incentives to its textile sector as an alternative to cash incentive.
Mr Khokon said they would lose competitiveness due to the cut in incentives as there are no alternative measures and the textile mills will be at risk of closure.
He also stressed the need for a timely textile policy, following the policies that the Indian government has been providing to its textile and garment industry, and a year of grace period for loan repayment.
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