Bangladesh:Terry towel makers demand 15pc cash incentive

Terry towel makers yesterday demanded the government raise cash incentive to 15 percent from the existing five percent to offset losses from global recession.

The leaders of Bangladesh Terry Towel and Linen Manufacturers and Exporters Association also sought that the government release arrear incentives from April as the industry is reeling under recession.

The demands were raised at a press conference at the National Press Club in the capital.

“We urge the government to earmark an amount of Tk100crore in the next budget for the terry towel sector,” said M Anisuzzaman, the association chairman.

He also suggested a government guideline on the release of such fund 15 days after exports.

Anisuzzaman said the tax at source for terry towel exporters should be equalised with the woven and knitwear manufacturers.

Terry towel is produced from the by-products of the spinning mills and currently the country is able to meet 95 percent of the raw materials demand for the terry towel manufacturers, he said.

He said although the government has announced some policy supports and stimulus packages for different sectors, it did not give anything for the terry towel sector despite having bright prospects.

“The government should bring down the bank interest rate to eight percent for export-oriented apparel sectors like India and Pakistan,” Anisuzzaman said.

The sectoral trade body chief urged the government to ensure long-term bank loan at three percent interest for establishing effluent treatment plants (ETPs). “It is not possible for a small investor to install an ETP at a cost of Tk 2 million,” he said.

The press was also informed that the country fetched US$112.88 million from terry towel exports last fiscal, registering a 6.5 percent growth. This fiscal’s (2008-09) target is $124 million, Anisuzzaman said.
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Source: The Dailystar,Dhaka