Govt mulls subsidy for exporters of agro-processing products

The government is now mulling providing cash subsidy also to exporters of agro-processing products as is enjoyed by the existing manufacturer-exporters of such items, officials say.
The government has taken an initiative to this end to enhance exports and expand the export markets of agro-products, they say.
"Presently the manufacturers of agro-processing products exporting their items are getting cash incentives against the exports from the government. But the businesses who are also exporting a large volume of such products every year do not get any such subsidy," ministry of commerce (MoC) Deputy Secretary Saidur Rahman Selim told the FE.
Commerce Minister Tofail Ahmed sent a letter last week to Finance Minister AMA Muhith requesting him for taking an initiative in this connection.
"Bangladesh Agro-processors Association (BAPA) is earning foreign currency by exporting agro-processing products. They are exporting 60 types of such products to 90 countries in the world," the minister said in the letter.
But "most of such exporters in the potential sector are incurring losses for different reasons," the letter mentioned.
As per the Bangladesh Bank circular-2005, manufacturer-exporters of agro-processing products and exporters of vegetables and fruits are now getting subsidies against their exports.
"But other exporters of the items are deprived of any such subsidy," the letter added.
The government was looking to have a positive impact on the country's overall export earnings in near future by providing such assistance, sources said.
Export of agro-products and agro-processing food items fetched about $ 5.23 crore or 52.3 million in the fiscal year (FY) 2009-10, $ 59.2 million in  FY 2010-11 and $ 86.9 million in FY 2011-12, sources said.