BTMA seeks 10-yr textile policy, cash incentive
Texbangla 2004 concludes
Star Business Report
Textile mill owners yesterday urged the government to formulate a 10-year policy for the development of textile sector and ensuring its competitiveness in global market. They also sought continuation of government support with a 15 percent cash incentive on textile exports, which is going to be phased out next year. "We need a textile and clothing policy along with a plan conforming to the changes in the global market," said Bangladesh Textile Mills Association (BTMA) Chairman MA Awal at the closing of Texbangla 2004, a three-day textile fair. The BTMA chairman also demanded immediate approval and proper implementation of a proposal to set up a $1.5 billion special fund, which was placed before the prime minister this January for the development of backward linkage industries. MA Awal also called for maintaining status quo on the current policies on central bonded warehouse, Saarc cumulation and rules of origin. "If global cumulation with eased rules of origin comes into effect, it will seriously hamper growth of textile industry," the BTMA chairman feared. On the issue of central bonded warehouse, which is a long drawn demand of ready made garment exporters, he said there is no need of setting up a central bonded warehouse to reduce lead-time of export. Speaking at the closing function, Local Government, Rural Development and Co-operatives Minister Abdul Mannan Bhuiyan stressed the need for reaching a consensus on the issue of central bonded warehouse. A Matin Chowdhury, former chairman of BTMA, made a presentation at the function highlighting the prospects and problems of textile industry. The BTMA organised the Texbangla 2004 at Dhaka Sheraton Hotel to showcase exquisite products made of locally produced yarn and fabrics. A total of 32 companies displayed cotton and blended yarn for knitting and weaving, cotton and acrylic yarn for sweater, knitted fabrics, dyed yarn of cotton and blend, home textile, dyed and printed cotton and blended fabric. Of the total RMG export of $5 billion, the contribution of local textile mills is about $2 billion, according to BTMA sources. The sector meets 90 percent of total requirements in knit and 40 percent of the total requirements in cotton fabrics. BTMA has a total of 626 members employing some 1.5 million workers.
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