The government is scrutinising a proposal of the apex trade body FBCCI for providing cash incentive to a number of products to help boost the country's exports, sources said.
The Federation of Bangladesh Chamber of Commerce and Industries (FBCCI) recently placed the proposal to the Ministry of Commerce (MoC), seeking export subsidies for 37 more agricultural products for widening the export basket.
The products are: food and dietary supplements, mushroom, organic fertiliser, organic pesticides, peanuts, medicinal plants and herbs and parts of plants, honey, vinegar, potato starch, all types of frozen vegetables, Birani mix, Firni mix, spices and others.
Presently, local exporters get cash incentive against export of around 60 agricultural items.
"We have received a proposal from the FBCCI and are working on it and hopeful of updating the existing list soon," a MoC official told the FE preferring anonymity.
The MoC official also said the ministry has recently written a letter to the Finance Ministry seeking their opinion on the issue.
However, exporters said many agricultural products have immense potential to fetch big amount of foreign currencies but due to the absence of cash incentive and other government support, local exporters cannot compete with their rivals.
"There is a huge demand for the items mainly among the foreigners and non-resident Bangladeshis and other Asian nations mostly residing in the Middle East, Europe and the United Kingdom but price factor emerged as an obstacle in their export," president of Bangladesh Fruits, Vegetables and Allied Products Exporters' Association, SM Jahangir Hossain told the FE.
"If the items are brought under cash incentive and some other facilities like setting up of a modern processing centre near the airport and hassle-free cargo services, export earnings from the agricultural sector especially vegetables and dried foods would be doubled in just couple of years'," he added.
Marketing director of Pran RFL Group, Kamruzzaman Kamal said export of their agricultural items and processed foods is increasing but government's special support could boost the export of the items significantly.
"After continuous efforts, we have succeeded in creating market. Now government's initiative can help fulfil our dream through exporting of those items," he added.
Bangladesh exported vegetables, including bitter gourd, brinjal, okra, bean, green chilli, cauliflower and others worth over US$104.06 million in the July-August period of the current financial year (FY) which is 14.31 per cent higher than the corresponding period of last year, according to Export Promotion Bureau.
Expatriates from Bangladesh, India, Pakistan, Sri Lanka and Nepal are the main consumers of the country's farm produces.
Although Bangladesh exports to over 20 countries, Middle Eastern countries account for more than 55 per cent of the exports, according to the exporters.
Presently, the vegetables and fruits for which the local exporters enjoy cash incentive include bitter gourd, snake gourd, bean, okra, ridged gourd, wax gourd, eggplant, green chilli, cucumber, bottle gourd, kidney bean, potato, banana, papaya, jackfruit, mango, litchi, black berry, guava and pineapple.
The government disbursed Tk16.04 billion during the last five financial years as cash incentives to the sector.
On an average, the sector received Tk 3.0 billion every year.
[email protected]
