Apparel industry leaders have urged the government to offer an additional incentive to help offset the higher cost of importing cotton from the United States as part of efforts to reduce the trade gap with the country.
They made the appeal at a discussion, titled 鈥淏AYLA Roadmap 2030: Resetting the Competitive Edge, Rethinking Bangladesh鈥檚 Apparel Industry鈥�, organised by the Bangladesh Apparel Youth Leaders Association (BAYLA) held at a hotel in the capital on Saturday.
The industry leaders also put emphasis on addressing high air freight costs and inefficiencies at ports to expedite further the trade growth.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), called for a reduction in tariffs to prepare for post-LDC graduation and challenges from US tariffs. High duties on imported man-made fibres remain a concern, he said.
He also highlighted the existing challenges within the banking sector and various other areas, including the National Board of Revenue (NBR) and customs.
Hatem said, 鈥淭he government has, however, initiated measures to address these issues in certain sectors, particularly concerning the NBR.鈥�
Envoy Textile Limited Chairman Kutubuddin Ahmed noted that US cotton costs about four cents more per pound than cotton from other sources.
He said importers could be encouraged to buy from the US if the government adjusted its current incentive scheme accordingly.
鈥淚f the government gives us this amount of extra money as an incentive for importing US cotton instead of the existing cash incentive, then entrepreneurs will be encouraged to import cotton from there,鈥� said Kutubuddin, also a former president of the BGMEA.
Anwar-ul-Alam Chowdhury Parvez, former BGMEA president, underscored the need for addressing high interest rates, rising utility prices and bureaucratic delays at ports.
He said Bangladesh is often labeled as a country of cheap labour, but if the country鈥檚 situation is compared with Vietnam, then it could be found that their transport, interest rates, logistics and other associated costs are significantly lower.
Importers also called for reduced harassment at customs, faster clearance at ports, and improved infrastructures to maintain Bangladesh鈥檚 export competitiveness.
Other speakers included BGMEA administrator Mohammad Anwar Hossain, former BGMEA president Faruque Hassan and Ananta Group Managing Director Sharif Zahir while BAYLA President Abrar Hossain Sayem moderated the session.