Importers seek incentive on US cotton to bridge trade gap
They have also pointed to high air freight costs and inefficiencies at ports as barriers to trade growth
Apparel industry leaders have urged the government to offer an additional incentive to help offset the higher cost of importing cotton from the United States, as part of broader efforts to reduce the trade gap with the country.
Speaking at a discussion event in Dhaka today (12 April), Envoy Textile Limited Chairman Kutubuddin Ahmed noted that US cotton costs about four cents more per pound than cotton from other sources.
He said importers could be encouraged to buy from the US if the government adjusted its current incentive scheme accordingly.
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"If the government gives us this amount of extra money as an incentive for importing US cotton instead of the existing cash incentive, then entrepreneurs will be encouraged to import cotton from there," said Kutubuddin, a former president of the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
The event, titled "BAYLA Roadmap 2030: Resetting the Competitive Edge; Rethinking Bangladesh's Apparel Industry," was organised by the Bangladesh Apparel Youth Leaders Association (BAYLA) at a hotel in the capital's Gulshan area.
Speakers at the programme also pointed to high air freight costs and inefficiencies at ports as barriers to trade growth.
Kutubuddin said air freight from Bangladesh is the costliest in the world, which is why many exporters prefer using Indian ports for shipments to third countries.
Importers also called for reduced harassment at customs, faster clearance at ports, and improved infrastructure to maintain Bangladesh's export competitiveness.
"Conferences are being organised to attract foreign investment, but has such a conference ever been organised to listen to the problems of Bangladeshi investors?" Kutubuddin asked.
Mohammad Hatem, president of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), called for a reduction in tariffs to prepare for post-LDC graduation and challenges from US tariffs. He said high duties on imported man-made fibres remain a concern.
He also highlighted the existing challenges within the banking sector and various other areas, including the National Board of Revenue (NBR) and customs.
Hatem added, "The government has, however, initiated measures to address these issues in certain sectors, particularly concerning the NBR."
Anwar-ul-Alam Chowdhury Parvez, another former BGMEA president, criticised high interest rates, rising utility prices, and bureaucratic delays at ports.
"While the global trade system had long operated under the framework of the World Trade Organization, that order was disrupted by the Trump administration, and it may now be difficult to restore it to its previous form," he said
He added, "Bangladesh is often labelled a country of cheap labour, but if we compare our situation with Vietnam's, their transport, interest rates, logistics, and other associated costs are significantly lower. In the end, our overall production costs are not much different.
"On top of that, interest rates here remain high, gas prices have tripled, and although industries are being told to operate only within economic zones, such zones have yet to be properly developed."
Criticising bureaucratic inefficiencies, he said, "Why does the NBR harass us unnecessarily? Why does it take ten days to clear goods at the port when it should take just three? And now, after ten years of consistency, why is there a sudden change in how product valuation is done under the HS code?"
Other speakers included BGMEA Administrator Mohammad Anwar Hossain, former BGMEA president Faruque Hassan, and Ananta Group Managing Director Sharif Zahir.
BAYLA President Abrar Hossain Sayem moderated the session, where the association also presented its 2030 roadmap.
