Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the Commerce Ministry to pay at least 10 per cent cash incentive for the shipment of non-cotton garment items made from man-made fibers (MMF). This will relieve exporters facing difficulties owing to the war, says Tapan Kanti Ghosh, Senior Secretary, Commerce Ministry.

The additional cash incentive will help accelerate garment shipment from Bangladesh and overcome the impact of the war, he added. The decision on new cash incentive will come into effect soon since orders are declining in some destinations due to higher inflation, Ghosh added. Despite the gloomy global outlook, exports from Bangladesh hit an all-time high of $52.08 billion in the just-concluded fiscal year. Garment exports from the country grew by 35.47 per cent Y-o-Y to $42.61 billion.

Currently, the government pays a 5 per cent cash incentive on the sales of garment items made from locally spun yarn, a 1 per cent additional incentive for exports in all markets and a 4 per cent cash incentive in non-traditional markets. Bangladesh considers all markets as non-traditional except the US, the EU, the UK and Canada.

Faruque Hassan, President, BGMEA, said, demand for non-cotton garment items are rising thanks to the change in fashion and styles. Of the total garment items exported from Bangladesh, 74 per cent is made from cotton fibre and the rest is manufactured from the non-cotton fibre.

The price gap between cotton and MMF-made items is also large. For instance, if a cotton-made garment item is sold at $5 apiece, the selling price of an MMF apparel item is $10, Hassan added.