Cash incentive on potato export doubled
Saturday, 24 April 2010
FE Report
The government has doubled cash incentive to 20 per cent against exports of potato to encourage the exporters, officials said Wednesday.
The potato exporters will receive the cash subsidy against the net repatriation of the free-on-board (FOB) prices of their products effective from April 1 to June 30 this year.
The central bank has issued a circular in this connection and asked the commercial banks to follow the provisions on the cash subsidy for the exportable product.
"We've issued the circular in line with the finance ministry's decision on the cash subsidy for potato," a senior official of Bangladesh Bank (BB) told the FE, adding that the banks will have to comply properly with the related provisions in this connection.
The cash subsidy on potato export will be re-fixed at 10 per cent against the existing 20 per cent for fiscal 2010-11, according to the circular.
"The government has doubled cash incentive on potato exports following a bumper production of the perishable item. It will also help ensure fair prices of the vegetable," the BB official added.
Last week, the government allowed cash incentive at 5.0 per cent against exports of crust leather and shipbuilding to encourage the exporters of the sectors.
The government earlier announced a list of 15 exportable products with inclusion of the two new items that will receive the cash subsidy for the fiscal 2009-10.
The government has doubled cash incentive to 20 per cent against exports of potato to encourage the exporters, officials said Wednesday.
The potato exporters will receive the cash subsidy against the net repatriation of the free-on-board (FOB) prices of their products effective from April 1 to June 30 this year.
The central bank has issued a circular in this connection and asked the commercial banks to follow the provisions on the cash subsidy for the exportable product.
"We've issued the circular in line with the finance ministry's decision on the cash subsidy for potato," a senior official of Bangladesh Bank (BB) told the FE, adding that the banks will have to comply properly with the related provisions in this connection.
The cash subsidy on potato export will be re-fixed at 10 per cent against the existing 20 per cent for fiscal 2010-11, according to the circular.
"The government has doubled cash incentive on potato exports following a bumper production of the perishable item. It will also help ensure fair prices of the vegetable," the BB official added.
Last week, the government allowed cash incentive at 5.0 per cent against exports of crust leather and shipbuilding to encourage the exporters of the sectors.
The government earlier announced a list of 15 exportable products with inclusion of the two new items that will receive the cash subsidy for the fiscal 2009-10.