• Sunday, August 18, 2019

Ten new products to get export subsidy in Bangladesh

Discussion in 'Bangladesh Defence Forum' started by Homo Sapiens, Aug 12, 2019 at 9:47 PM.

  1. Homo Sapiens

    Homo Sapiens SENIOR MEMBER

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    https://www.fibre2fashion.com/news/...-subsidy-in-bangladesh-251248-newsdetails.htm

    Ten new products to get export subsidy in Bangladesh
    12
    Aug '19

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    Pic: Shutterstock


    The Bangladesh Government will extend subsidies on the export of 10 new products to boost export earnings to $50 billion by 2021, achieve higher growth and generate jobs. Garment export to the United States, Europe and Canada will also for the first time receive 1 per cent of the earnings as subsidy, for which the government has allocated Tk 2,825 crore.

    Garment export already gets subsidies in four categories ranging from 2 to 4 per cent.

    The decisions, taken at a meeting chaired by finance minister AHM Mustafa Kamal recently, will soon be conveyed to the central bank for implementation, according to a report in top Dhaka-based newspaper.

    According to finance secretary Abdur Rouf Talukder, the fruits of this subsidy would come through the achievement of the gross domestic product growth target.

    At present, cash incentives ranging from 2-20 per cent is offered on the export of 26 categories of products. The new products will be eligible for cash incentives of 4 to 10 percent.

    They include garment products made from scrap fabrics, surgical instruments and appliances, home appliances, particle boards and products from betel nut plants.

    Agro and synthetic products made by Bangladeshi entrepreneurs at export processing zones, software made by local companies at hi-tech parks and PET flakes will also get the benefit.


    The finance secretary also said remitters would get cash incentives effective from July 1 and the Bangladesh Bank would issue a circular within a week.

    He said remittance of up to $1,500 would get incentives with no questions asked. However, anything above will require necessary verification documents. (DS)
     
    Last edited: Aug 12, 2019 at 10:07 PM
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  2. mb444

    mb444 SENIOR MEMBER

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    Provide greater support for pharma, IT and shipbuilding sector. These are growth area that should be nurtured.
     
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  3. Bengal71

    Bengal71 FULL MEMBER

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  4. bluesky

    bluesky SENIOR MEMBER

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    I think different govt organs have different information and the targets are not well-coordinated. So, many things are disorganized. However, the real export target may be correctly set by the trade minister near the end of December this fiscal. The actual export performance is somewhat clear by that time based on which the real target is set.
     
    Last edited: Aug 14, 2019 at 5:08 AM
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  5. Bilal9

    Bilal9 ELITE MEMBER

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    This is an excellent move however we should still mobilize our Embassies and High Commissions to explore trade opportunities in non-traditional markets like those in South America, Africa, Middle East Eastern Europe and Australia although some of these areas have smaller market size. Russia remains an underutilized market for sure.

    Maximizing exports to non-traditional markets will provide better dividends at this time, rather than developing new items in the export basket, which will take time.

    To make this job easier, we should look at where India exports traditional bulk manufacturing items (not engineering goods except simple items like motorcycles) and then offer our own products at a substantial discount temporarily, which should be quite easy. This has been done successfully to garments sector already.
     
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