Bangladesh Garment Manufacturers and Exporters Association (BGMEA) President Faruque Hassan said Bangladesh can earn at least US dollar 2 billion in its export earnings annually by grabbing the growing global market of man-made fibre (MMF) textiles. BGMEA president request to the government to provide a 10 percent cash incentive for non-cotton based garment exports.
Demand for man-made fibre (MMF) textiles all over the world is on the rise with annual growth of 3 to 4 per cent as a substitute for cotton amid changes in global fashion trends.
According to BGMEA, currently MMF dominates global textile fibre consumption with around 75 per cent non-cotton fibre (64 per cent MMF) while the cotton share is only 25 per cent.
The share of MMF has been steadily increasing due to the inherent limitations of growth of cotton and other natural items. BGMEA president said they did not ask for reduction of any tax this time but only wanted continuation of those facilities that are already in place.
BGMEA president said though there was investment in the non-cotton or MMF sector in the past; it was mainly capital investment and technology-based investment.
He also said, it will encourage investment and exports in the non-cotton sector if 10 per cent incentive is given on export of non-cotton products. Faruque said they did not see that much investment in the sector in the last couple of years which is required for employment generation.
One of the non-cotton garments maker,Shovon Islam, Managing Director of Sparrow Group said, increasing our market share in non-Cotton category will be one of the key forces behind our export growth. So, incentive for export on this category as well as investment in training for production and investment backyard linkage should be emphasized,he added