The government is set to fix the wastage rate for home textile and terry towel products to remove some hurdles and boost exports, officials said.
In this connection, the Ministry of Commerce (MoC) recently formed a high-powered committee.
The 11-member committee has already started work in this regard and it will submit required suggestions after necessary scrutiny, a source at the MoC said.
In February 2022, Foreign Investors Chamber of Commerce and Industry (FICCI) demand that the government fix the wastage rate for home textile and terry towel products to remove some hurdles and boost exports through a letter.
In the letter, the FICCI requested the MoC to take necessary step in this regard, setting off a process of weighing the merit of the matter.
"…there is no specific determined wastage rate for the home textile and terry towel products produced in and exported from Bangladesh," the letter read.
The chamber feels that the absence of a particular wastage rate for the two apparel products is creating multiple problems and challenges in producing, exporting and obtaining government provided cash incentives, it noted.
The trade body of foreign investors mentioned that the MoC has recently re-determined the wastage rate for the production and export of knitwear-at maximum 30 per cent in Bangladesh.
Due to the similar nature in production, the wastage rate to be set for the home textile and terry towel sector should be similar to that of the knitwear sector (maximum 30%), it said.
For this, the chamber has requested the ministry to take necessary steps to re-determine the wastage rate (maximum 30%) for the sector.
The FICCI believes that this initiative will not only increase the production and export of home textile and terry towel items but also generate more employments in Bangladesh, the letter continued.
Besides, this initiative will be instrumental in attracting more FDI in home textile and terry towel sector of the country, it added.
