Garments exporters and Textile traders asking 5% cash assistance to Gov. in garments exporting for all market including United States, European Union (EU) to tackle ‘mutli-pronged challenges’ in the ready made garment industry.
They expressed that the current condition of garment industry is very compromised. Small and medium enterprises shutting down, Buyers are not paying the desired price. If the cash aid is provided for five years, the clothing sector will revolt again.
A pre-budget discussion at Amari Dhaka Hotel were held In the capital city’s Gulshan , on Monday afternoon, three organizations of garments and textile traders – BGMEA, BKMEA and BTMA joint press conference demanded to provide cash assistance in the next fiscal year budget..
Rubana Huq, president of Bangladesh Garment Manufacturers and Exporters Association, or BGMEA, also urged the government to reduce the Value Added Tax imposed on the labour-intensive clothing industry to make it more competitive in the global market.
Rubana showed some logical points behind their asking 5% cash assistance; she said the situation in the garment sector is very compromised, prices of readymade garments in the international market are dropping every day. As a result, 22 garment factories went out of business in the last month alone while the figure for the last year was around 1200.
“The production costs on the other hand are rising. Under the circumstance, thousands of entrepreneurs and workers will fall into disarray if the government doesn’t provide special assistance in the budget,”she said.
‘Huge growths’ have happened in the new markets as a result of the 4 percent cash assistance that is presently in effect, the BGMEA chief said.
“The new markets make up 20 percent of the export businesses. The government will have to spend Tk 117.24 billion at most in order to provide a 5 percent cash aid. But the entire industry will benefit from it,” she argued.
BKMEA Senior Vice President M Mansoor Ahmed, BTMA President Mahmud Ali Kokhon and Expoters’ Association Bangladesh First Vice President Mohammad Hatem also spoke at the briefing.