Bangladesh Garment Manufacturers and Exporters Association (BGMEA) today sought 3 percent cash incentive in the proposed budget for fiscal 2019-20 to meet the country’s export goal overcoming global challenges.
“Around Taka 56.50 billion would be required to meet our demand for the additional 2 percent cash incentive,” said BGEMA President Dr Rubana Huq at a post budget press conference in a city hotel.
The government in the propped budget has allocated Taka 28.25 billion as 1 percent incentive as currently, four sectors of RMG are receiving export incentives at 4 percent.
Replying to a query, Rubana said local industry is currently going through some major challenges such as increased production cost, absence of research and development, product diversification and value addition and innovation etc.
The trade body of the country’s apparel sector also requested the government to depreciate country’s currency by Taka 1 on total export earnings of readymade garments (RMG) to pave the way for getting additional Taka 34 billion annually.
Mentioning that local industry’s competitive edge has decreased with the global competitors due to the controlled exchange rate of local currency, the BGMEA President reiterated her demands for giving additional Taka 5 against per US dollar as exchange rate for all export oriented sectors.
Their other demands included implementation of the government’s decision of single digit bank interest rate, inclusion of garment workers in the government’s safety net programme and giving the RMG sector priority in the proposed creating new entrepreneurs and research and development funds.
BGMEA vice presidents Faisal Samad, SM Mannan Kochi, MA Rahim and Md Mashiul Azam, among others, were present.