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Ensure MMF garments are made from local yarn, urges BTMA


Mohammad Ali Khokon, President, BTMA urged TipuMunshi, Commerce Minister to ensure RMG exporters make their MMF garments from locally produced yarn and fabric before offeringthem cash incentives. This would help Bangladesh develop the backward linkage industry in the country and achieve higher realisationof export proceeds, they argued, he added.

The request was made after the ministry backed a demand by RMG manufacturers that they be provided 5 per cent cash incentive on exports of non-cotton apparel items.

The commerce ministry then wrote to the finance ministry regarding the issue.

As global demand for MMF garments rises, BTMA member firms are producing viscose, polyester, various filament yarn and blended yarn using imported MMF and making 'deemed exports' to local RMG exporters, he said.

Several mills to produce MMF and its raw material PET chips are also being set up in the country to meet local MMF requirement, he said, hoping that these units will start production by the end of next year, according to Bangladeshi media reports.

Khokon urged the government to provide a 5 per cent additional cash incentive on exports of RMG produced from MMF, considering the three stages of production—yarn from MMF, fabric from yarn and then RMG production.

BTMA said around 0.15 million tons of MMF were imported in the last fiscal.


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