Bangladesh’s apparel exporters have called for restoring cash incentives on the use of local yarn to 5%, citing the deteriorating condition of domestic spinning mills and the need to boost export competitiveness.
In a letter dated December 24 to Dr Md Khairuzzaman Mazumder, secretary of the Finance Division, Ministry of Finance, BTMA President Shawkat Aziz Russell requested continuation of export incentives and cash assistance for BTMA member textile mills until December 31, 2028.
Exporters also proposed a 10% direct incentive for spinners to support local production. Many spinning mills are operating at 50-60% capacity due to competition from cheaper Indian yarn.
Bangladesh Textile Mills Association (BTMA) requested extending export cash incentives for three more years to help the sector cope with rising costs, energy shortages, and global economic uncertainty, emphasizing the importance of sustaining yarn supply for the ready-made garment industry, which accounts for nearly 85% of national exports.
