Fabricated numbers to show higher export part of conspiracy: BTMA president
"Reducing cash incentives would severely jeopardise the industry and halt its progress, potentially leading to its demise like the jute industry in the future," said the BTMA president
Showing inflated export figures through false information was part of a conspiracy that has harmed entrepreneurs in the country's textile sector, claimed Mohammad Ali Khokon, the president of the Bangladesh Textile Mills Association (BTMA) today (6 July).
"In a meeting of the Ministry of Commerce last year, when we said our exports do not reflect the export data shown by the Export Promotion Bureau (EPB), the central bank governor and others scolded us, saying, why were we saying that exports are less. Then we, including the then president of BGMEA, became silent," he said during a press conference at his office in the capital's Panthapath.
"We have been deprived of many benefits with the false information of export growth, which was a kind of conspiracy," Khokon added.
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Today's press conference was organised to highlight how the reduction of cash incentives could harm the textile sector.
"Reducing cash incentives would severely jeopardise the industry and halt its progress, potentially leading to its demise like the jute industry in the future," said the BTMA president.
He also voiced concerns that, for these reasons, the industry might eventually become dependent on foreign markets.
Khokon further said, "The price of gas has increased, and the gas crisis is more severe. Production cost per kg of yarn is $1.25. If production is halved due to gas shortage, the cost becomes $2.5. Also, the period available under the Export Development Fund (EDF) was 365 days, but it has been reduced.
"Besides, due to currency devaluation, working capital has reduced by 40%. The rate of interest has also increased. The 9% interest rate has now increased to 15.5% in the sector, an increase of about 48%."
Stating that the local industry has lagged behind in the competition due to these reasons, he said the import of yarn from neighbouring country India has increased by about 13% in the last one year.
"The facilities that are provided in India are not provided here. Because of this, some factories have already closed down permanently. Several more factories will be closed by next December. As a result, import dependence will increase and at some point this local market will be taken over by foreigners," he added.
