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Textile mills to get special incentive

  • Published at 08:30 am May 15th, 2013
Textile mills to get special incentive

The textile mills of the country will be entitled to get a special cash incentive of 5% as Bangladesh Bank issued an order yesterday.

The central bank revised the cash incentive policy in the backdrop of textile mills being affected by the global volatile cotton price three years back, said a circular issued to all foreign exchange dealer banks to implement it with immediate effect.

The mills, however, have to follow some BB directives to avail of the incentives.

According to the government’s earlier decision, the mills those imported cotton between August, 2010 and March, 2011 against letters of credit and supplied it to export-oriented mills within December 31, 2011, will get such special incentives.

Textile millers are yet to get their pledged cash incentives for the unusual rise in cotton price in the financial year 2010-11.

Earlier, BTMA said they failed to fulfill the demand for some papers asked by BB as a precondition for getting that stimulus, making cash incentive uncertain.

During the period, textile millers incurred losses by almost $1 per pound of cotton due to global crisis and India's imposing and lifting of ban on export of the same, according to BTMA.

At present, local textile mills meet 90% requirement of knitwear and 40% of woven garment factories and help the country to earn a huge amount of foreign currencies through exports.