Business Desk :
The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has demanded fund allocation in the next budget for creating a global platform, like Amazon, eBay and Alibaba, so Bangladesh can export clothes of local brands to the international market.
Such an online platform will help garment manufacturers to deliver products directly to foreign buyers through individual shopping portals.
The BGMEA also wants to sell garments of local brands at the retail level outside the country through the online platform and has sought up to 15% cash incentive against the exported items.
The demands put forward by the highest body of garment owners also include waiver of interest against loans, fund allocation for health and education of garment workers, incentives to help the sector deal with Covid impacts and 10% cash incentives for the next 10 years for exporting garments and in recycling textile waste to produce fashion items.
In a budget proposal for the fiscal 2021-22 sent to Finance Minister AHM Mustafa Kamal last week, BGMEA President Rubana Huq said the global market was inclining towards online sales and the ongoing trend indicated a rise in online purchases in future.
“While we are trying to recover from the shock, the second wave disrupted the retail market and demand causing a slowdown in exports and a continued downward pressure on price. This also means underutilisation of capacity leading to increased marginal cost.”
The detection of the new strain of the coronavirus and declining retail sales in both the USA and the EU caused the garment sector to lose 2.87% unit value in 2020. The decline was recorded at 4.26% between September 2020 and February 2021.
Against this backdrop, the RMG industry needs continued government support along with a number of additional policy assistance for its survival, recovery, growth and sustenance, Rubana said.
