Shrimp exporters push for cash support
Tuesday, 29 March 2011
Monira Munni
Frozen food exporters will push for the continuation of cash incentives when they meet with Prime Minister Sheikh Hasina at her office Wednesday, officials said Monday. A 30-member team led by newly elected president of Bangladesh Frozen Food Exporters Association (BFFEA) Kazi Shahnewaz will meet the Prime Minister. "Our agenda is to sustain the growth of the sector and seek the government support," Mohammad Aminullah, senior vice-president of BFFEA, told the FE Monday. "We will request the PM to continue the cash incentive at 12.50 per cent, which is essential to sustain the growth of our exports," he said. Exporters feared that overseas sales of shrimp-- third largest export earner of the country-may decline in the next fiscal due to reduction in government cash incentives for the sector. "Farmers are the prime beneficiary of the cash support as they get it directly and this encourages farmers to cultivate more shrimp," Mr Aminullah said. But the government's decision to cut the additional incentive might have negative impact in production and export volume in the next fiscal, they said. In 2009-10 fiscal year, the government increased cash support to 12.5 per cent from 10.0 per cent for the exporters to overcome the effect of the financial crisis. But it withdrew 2.5 per cent additional financial assistance in the current fiscal. The BFFEA leader said they will also discuss providing interest-free 'block account' facility that they earlier demanded to overcome the liquidity crisis. "We demanded providing us with interest-free block account (cash credit loan) but the government has provided term loan with 11 per cent interest for five years," he said, adding this will compound the liquidity crisis. Officials said the team will discuss on how to increase production and export earning and also raise the issue of reduction of tax at source.
Frozen food exporters will push for the continuation of cash incentives when they meet with Prime Minister Sheikh Hasina at her office Wednesday, officials said Monday. A 30-member team led by newly elected president of Bangladesh Frozen Food Exporters Association (BFFEA) Kazi Shahnewaz will meet the Prime Minister. "Our agenda is to sustain the growth of the sector and seek the government support," Mohammad Aminullah, senior vice-president of BFFEA, told the FE Monday. "We will request the PM to continue the cash incentive at 12.50 per cent, which is essential to sustain the growth of our exports," he said. Exporters feared that overseas sales of shrimp-- third largest export earner of the country-may decline in the next fiscal due to reduction in government cash incentives for the sector. "Farmers are the prime beneficiary of the cash support as they get it directly and this encourages farmers to cultivate more shrimp," Mr Aminullah said. But the government's decision to cut the additional incentive might have negative impact in production and export volume in the next fiscal, they said. In 2009-10 fiscal year, the government increased cash support to 12.5 per cent from 10.0 per cent for the exporters to overcome the effect of the financial crisis. But it withdrew 2.5 per cent additional financial assistance in the current fiscal. The BFFEA leader said they will also discuss providing interest-free 'block account' facility that they earlier demanded to overcome the liquidity crisis. "We demanded providing us with interest-free block account (cash credit loan) but the government has provided term loan with 11 per cent interest for five years," he said, adding this will compound the liquidity crisis. Officials said the team will discuss on how to increase production and export earning and also raise the issue of reduction of tax at source.