Policy soon to boost leather goods, footwear exports
The government has initiated a move to formulate a policy for the capacity-building of leather goods and footwear manufacturers to boost export, reports UNB.
Officials at the Commerce Ministry said they have already drafted a policy taking into consideration the government's Vision 2021.
It the policy option, it was proposed providing 16.5 per cent cash incentives to the exporters against their exports and setting up a national design centre at a cost of Tk 60 crore to develop design of the leather goods and footwear.
The news agency has obtained a copy of the draft policy, which was prepared through a process of inter-ministerial workshops and consultation meetings.
As per the proposal of the draft policy, Leather-goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), a trade body representing the sector, will receive the fund from the government to set up and operate the design centre.
The exporters will continue to receive the cash incentives upto 2021 as instrumental to promote the export.
At present, the country annually exports about $1.16 billion of leather goods and footwear products.
It the proposed policy, the export is targeted to reach 5 billion when the country's total export will stand at 60 billion.
It also said the leather sector has been the country's oldest export sector developed over five decades ago where about 1 million people are employed directly and indirectly.
The sector has been growing at 20 per cent and it shares 3.4 of the total export earnings.
Being the 2nd largest export sector, the leather-goods and footwear contributes 1 per cent of the GDP.
Official sources said the Commerce Ministry has recently submitted the draft policy to the Cabinet Economic Affairs Committee seeking its approval.
Once the policy is approved, the exporters will receive cash incentives and other facilities while the LFMEAB will get Tk 60 crore to set up the design centre to develop design and carry out research and development (RND) works for the sector.
Source: http://www.theindependentbd.com
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