The Bangladesh Textile Mills Association (BTMA) has welcomed the government’s decision to raise alternative cash assistance for export-oriented domestic textile products from 1.5% to 5%, describing the move as a major policy milestone that will strengthen Bangladesh’s textile value chain and enhance export competitiveness.
The increased incentive, which will be provided alongside existing customs bond and duty drawback facilities, reflects the government’s continued commitment to supporting the country’s textile industry and promoting greater domestic value addition.
According to BTMA, the policy is the result of sustained advocacy and constructive engagement with the government under the leadership of Showkat Aziz Russell, President of the association. Through a series of high-level consultations, BTMA consistently called for stronger incentives to encourage the use of locally produced yarn and fabrics, strengthen the country’s backward linkage industry, and improve Bangladesh’s position in the global textile and apparel market.
The association believes the enhanced cash assistance will stimulate fresh investment, create employment opportunities, increase local value addition, and accelerate the sustainable growth of the textile and apparel sector.
BTMA also expressed appreciation to the government for responding to the industry’s long-standing demand, stating that the revised incentive will help domestic manufacturers remain competitive amid increasing global competition and changing international trade dynamics.
The policy is expected to provide significant support to Bangladesh’s export-oriented textile manufacturers while reinforcing the country’s efforts to build a more resilient and value-added apparel supply chain.
