Restore 20pc cash incentive for handicraft exports

The Ministry of Industries has submitted a proposal to restore a 20 per cent cash incentive on handicraft exports, responding to a request from industry representatives seeking stronger policy support for the sector.
In an official communication issued on March 3, the ministry forwarded an application from Banglacraft urging the government to reinstate the incentive facility to boost export competitiveness and support the country's handicraft industry.
According to the letter, the handicraft sector plays a significant role in Bangladesh's rural economy, employment generation and foreign exchange earnings.
The ministry noted that the industry also contributes to women's economic empowerment, as a large share of entrepreneurs and workers involved in handicraft production are women.
Officials said that expanding export incentives could help entrepreneurs increase shipments to global markets, enhance product competitiveness and attract new investments in the sector.
The communication recalled that handicraft exporters earlier received 20 per cent cash assistance through the banking system under the supervision of the Bangladesh Bank (BB).
However, the rate has gradually been reduced over time and currently stands at around 6.0 per cent in the FY 2024-25 fiscal framework, industry representatives said.
Banglacraft argued that restoring the previous level of support would help exporters cope with rising production costs and strengthen Bangladesh's position in international handicraft markets.
The ministry observed that increased incentives could encourage exporters, expand market access for small and medium enterprises, and stimulate economic activity in rural areas where most handicraft production takes place.

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