The apparel manufacturers of the country demanded a 10% incentive (export value) on the export of non-cotton items or items manufactured by man-made fibre (MMF) in the upcoming budget of the fiscal year 2023-24.
In this regard, The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan sent a letter to Finance Minister AHM Mustafa Kamal on April 16.
In this letter, he said ss per FY 2021-22 exports, about 76% of the total RMG exports were cotton items though growth in non-cotton garments exports has been promising in recent years.
“Where about 75% of the total textile consumption in the world is non-cotton and the share of cotton is only 25%. Moreover, currently 52% of global apparel trade is non-cotton, while our non-cotton apparel exports account for only 26%,” he added.
However, although the non-cotton or MMF sector has attracted some investment in recent years, these investments are mainly capital and technology dependent.
“Our woven sector, especially the non-cotton sector, will be in crisis,” he added, noting that to overcome this situation, investment in backward linkage sectors, particularly in the woven and non-cotton sectors is required.
In the current world, the demand for non-cotton products is increasing due to the continuous change in the lifestyle of consumers and the increasing demand for sustainable and eco-friendly clothing.
“Taking into account the global market for non-cotton products and our export potential, special incentives of 10% (of export value) on non-cotton garment exports will encourage investment and exports in this sector and maintain a competitive edge in the budget for the next financial year 2023-24,” he added.
This incentive will increase exports, will attract new investment, and will create new employment, he added.