Govt expands incentives to boost jute exports, reduce reliance on RMG: Minister

Textiles and Jute Minister Khandakar Abdul Muktadir on Monday told Parliament that the government has undertaken a series of measures to promote jute and agricultural product exports, aiming to diversify Bangladesh’s export basket and reduce the economy’s heavy dependence on the ready-made garments (RMG) sector.

The minister said the initiatives are designed to strengthen the competitiveness of jute and agricultural products in international markets, expand export destinations and increase foreign exchange earnings, he said responding to a written question from BNP MP Biswas Jahangir Alam in Parliament, reports UNB.

The Minister said Bangladesh’s export sector remains heavily reliant on the RMG industry, which accounts for approximately 84 per cent of the country’s export earnings.

To reduce dependence on a single sector, the government has taken steps to extend facilities similar to those enjoyed by the RMG industry to other promising export-oriented sectors.

As part of this effort, partial export-oriented enterprises operating in eight sectors-including leather and leather goods, jute and jute products, agricultural products, pharmaceuticals, ICT and software services, light engineering products, frozen foods and fish, and plastic products-have been granted bonded warehouse facilities against bank guarantees.

He said the National Board of Revenue (NBR) has already issued the necessary government order in this regard.

The minister noted that jute and jute-based products have also been brought under the government’s cash incentive programme to encourage exporters and enhance the sector’s global competitiveness.

To strengthen international market access, jute and jute products have been included in the Global Sourcing Expo, providing exporters with additional opportunities to showcase their products to international buyers.

He further said Bangladesh regularly participates in the Frankfurt International Trade Fair (Ambiente) in Germany with the objective of expanding markets and increasing export growth for jute and diversified jute products.

In addition, the government organises fairs on a regular basis marking National Jute Day. These events are aimed at promoting exports of jute and diversified jute products while highlighting their domestic commercial potential.

The minister said the government is currently providing export incentives ranging from 0.3 per cent to 10 per cent on the export of 43 products.

Under the existing incentive structure, diversified jute products receive the highest financial incentive of 10 per cent, while finished jute goods such as hessian, sacking and carpet backing cloth (CBC) receive a 5 per cent incentive.

Meanwhile, exporters of jute yarn and twine are eligible for a 3 per cent cash incentive, he added.