Bangladesh Jute ministry to propose for 10 percent export subsidy

With the Bangladesh government releasing a total of Tk 25.92 billion as cash incentive in the fiscal year 2013-14 to encourage jute and jute goods sector. The Ministry of Textiles & Jute feels the need to increase export subsidy on jute yarn in the upcoming fiscal year to further lift exports to the international market.

The Ministry of Textiles & Jute would be putting forward proposal to the finance ministry to increase the export subsidy offered to jute sector from 7.50 percent to 10 per cent.

The request will be forwarded through a letter to the finance ministry for increasing cash subsidy on jute yarn to 10 percent.

During the first nine month of the current fiscal, the jute and jute goods sector, a negative growth of around 20 per cent was seen over the corresponding period of the last fiscal.

Jute sector needs munificent support from the government to increase the share of its export market. Cash incentive on export offered by the government is an assistance which is performance based. If these cash subsidy were increased jute mills would increase their production to get this benefit. This in turn will help to increase the efficiency level of Bangladesh’s jute industry.