Duty-free raw materials for weavers misused: Textiles adviser

While the government has provided duty benefits on raw material imports to reduce costs for weavers, marginal weavers are not reaping the intended benefits.

Textiles and Jute Adviser Sk Bashir Uddin said this today (26 February), adding, "Unfortunately, there has been misuse, which has made the rich richer and the poor poorer." 

Bashir was speaking at a workshop on "Reform and Development of Conventional Methods of Supplying Yarn, Dyes, and Chemicals at Fair Prices among Weavers", organised by the Bangladesh Handloom Board at the Jute Diversification Promotion Centre conference room in the capital.

"It is very sad. Neither the weavers nor the government benefited from this. Some middlemen have made unjust profits, and while I don't see injustice in rational business, I do see it in such exploitative practices," the adviser said. 

He stated that those who add value in business, whether they make a profit or a loss, are legitimate. However, when a businessman exploits the benefits and sells products in Narayanganj with duty concessions, it is wrong. As a result, they become wealthier, while marginal weavers become poorer.

He emphasised the need to establish norms against corruption, as they can sometimes address issues that laws cannot. "In a society like ours, not everything can be regulated by law; norms are essential." 

The adviser said, "Despite numerous tax benefit clauses, widespread injustice occurs when norms are broken. Norms are what make us better, and we need the cooperation of weavers to identify where corruption is happening so we can take action to stop it."  

He suggested creating smart cards for real weavers who import yarn, dyes, and chemicals under duty-free facilities, which would contain information about the benefits received and help stop irregularities.

"Our aim is to make weavers economically self-reliant. To achieve this, we need materials at a reasonable cost, increased productivity, and product diversification," he pointed out.

At the event, marginal weavers complained that while the government provides a system for importing duty-free raw materials, such as yarn and dyes, for their benefit, most of them are unaware of this. Instead, a group is exploiting the facility to sell the imported materials in the domestic market.

The paper presentation at the event highlighted several challenges, including a lack of capital for marginal weavers, insufficient awareness among weavers' associations about import processes, dependence on middlemen and institutions, and irregularities and corruption in the import and distribution of duty-free raw materials.

Md Zahirul Haque, proprietor of Semom Fabrics, said handloom weaving is steadily declining in the country, with low income and insufficient capital preventing weavers from applying for duty-free benefits, forcing them to procure raw materials from moneylenders.

According to weaving census statistics, there are currently 116,000 handloom units and around 900,000 weavers. 

Textiles and Jute Secretary Md Abdur Rauf and Bangladesh Handloom Board Chairman Abu Ahmed Siddique also spoke at the event.