Govt to withdraw addl cash incentive from July
Friday, 9 April 2010
Monira Munni
The government has decided to discontinue the additional 2.5 per cent cash incentive for the frozen food exporters from the next fiscal.
"The extra 2.5 per cent cash support, which was offered to frozen shrimp and fish exporters enjoying loan rescheduling facilities, will be withdrawn from July 2010," a Finance Ministry statement said recently.
In November 2009, the government decided to withdraw the announced additional cash subsidy to the frozen food exporters; but last month, the government reversed the decision to boost the sector as it was hit hard by global recession and self-imposed ban for detection of nitrophorun in many of its consignments. And the increased 2.5 per cent cash incentive was to remain effective from April 2009 to June 2010.
"The government should continue the cash support as it had announced the same to promote the sector hit hard by global recession and self-imposed ban," Maksudur Rahman, vice-president of Bangladesh Frozen Food Exporters Association told the FE.
"This would increase our competitiveness in the global market making our production cost-effective as the farmers would be directly benefited by the support," he added.
Meanwhile officials said although the 2.5 per cent incentive will be withdrawn, a new package in the form of block account facility has been introduced for the exporters.
The government has decided to discontinue the additional 2.5 per cent cash incentive for the frozen food exporters from the next fiscal.
"The extra 2.5 per cent cash support, which was offered to frozen shrimp and fish exporters enjoying loan rescheduling facilities, will be withdrawn from July 2010," a Finance Ministry statement said recently.
In November 2009, the government decided to withdraw the announced additional cash subsidy to the frozen food exporters; but last month, the government reversed the decision to boost the sector as it was hit hard by global recession and self-imposed ban for detection of nitrophorun in many of its consignments. And the increased 2.5 per cent cash incentive was to remain effective from April 2009 to June 2010.
"The government should continue the cash support as it had announced the same to promote the sector hit hard by global recession and self-imposed ban," Maksudur Rahman, vice-president of Bangladesh Frozen Food Exporters Association told the FE.
"This would increase our competitiveness in the global market making our production cost-effective as the farmers would be directly benefited by the support," he added.
Meanwhile officials said although the 2.5 per cent incentive will be withdrawn, a new package in the form of block account facility has been introduced for the exporters.