Government to fix home textile products' wastage rates
There is no specific determined wastage rate for the home textile and terry towel products produced locally
The government is set to fix the wastage rate for home textile and terry towel products to remove some hurdles and boost exports.
In this connection, the Ministry of Commerce recently formed a high-powered committee, officials said.
The 11-member committee has already started work in this regard and it will submit required suggestions after necessary scrutiny, a source at the ministry said.
In February earlier this year, Foreign Investors Chamber of Commerce and Industry (FICCI) demanded that the government fix the wastage rate for home textile and terry towel products to remove some hurdles and boost exports through a letter.
In the letter, the FICCI requested the ministry to take necessary steps in this regard, setting off a process of weighing the merit of the matter.
There is no specific determined wastage rate for the home textile and terry towel products produced in and exported from Bangladesh, the letter read.
The chamber felt that the absence of a particular wastage rate for the two apparel products is creating multiple problems and challenges in producing, exporting and obtaining government provided cash incentives, it noted.
The trade body of foreign investors mentioned that the ministry had recently re-determined the wastage rate for the production and export of knitwear-at maximum 30% in Bangladesh.
Due to the similar nature in production, the wastage rate to be set for the home textile and terry towel sector should be similar to that of the knitwear sector (maximum 30%), it said.
For this, the chamber has requested the ministry to take necessary steps to re-determine the wastage rate (maximum 30%) for the sector.
FICCI believed that this initiative will not only increase the production and export of home textile and terry towel items but also generate more employment in Bangladesh, the letter continued.
Besides, this initiative will be instrumental in attracting more FDI in the home textile and terry towel sector of the country, it added.