In the wake of decline in global supply of fabrics due to coronavirus pandemic, a local trade body has urged the government to urgently enhance the country's textile manufacturing strength for maintaining the export growth of readymade garments (RMG).
Chittagong Metropolitan Chamber of Commerce and Industry (CMCCI) made the call aiming to reduce the dependency on foreign fabrics.
It said import of fabrics from china has already declined due to the coronavirus outbreak and expressed fear that the country's apparel exports would be severely affected unless the supply of textile fabrics from China does not improve soon.
Some factories are already on the verge of shutting down production due to short supply of fabrics, it said.
In a recent letter to the Prime Minister's Office (PMO), CMCCI president Khalilur Rahman recommended the government to strengthen the textile base through providing incentives to the entrepreneurs for setting up of new production facilities or expansion of the existing units.
He also proposed to carry out BMRE (balancing, modernisation, renovation and expansion) of the state-owned and privately-owned textile mills, and resuming closed state-run textile mills.
He stressed the need for providing 15-year tax holiday facility and taking measures to direct 20 per cent of the banks' total loans and advances to the textile industries.
He said the investors would be willing to come to the sector if they get 90 per cent of the project value as loan for a long term period of 25 years at an interest rate of 3 per cent.
The CMCCI said that the stimulus package would help set up many textile units in the country and produce high-value fabrics with modern machineries. A substantial amount of foreign currency will also be saved, as a result.
If Bangladesh could achieve self-sufficiency in textile production, it would also help reduce the lead time of export, said the trade body, adding that the country would then be able to earn around US$ 500 billion by exporting apparel items.
