Primary textile millers sought on Saturday facilities including raising the limit of Export Development Fund (EDF) to $25 million from $15 million and repayment period to 270 days from 180 days. They also demanded extension of the facilities to their other sub-sectors like weaving, dyeing and printing-finishing. Their demands were placed at a seminar on ‘Export Development Fund (EDF) Towards the Growth of Textile Industry’ organised by Bangladesh Textile Mills Association (BTMA) in the city. The seminar was organised to apprise the BTMA member mills of some issues and increase their awareness and knowledge about EDF through interactive discussion. Due to lack of awareness and knowledge many of the member mills cannot avail the facility while many of them find the existing limit insufficient to meet their actual need. Executive Director of Bangladesh Bank was present as the chief guest at the seminar presided over by the BTMA President Tapan Chowdhury. The BB introduced EDF to facilitate import of raw materials of the export-oriented industries at a low rate. And considering the importance of the bulk use of raw cotton by the spinning mills, the central bank has extended the limit to $15 million. Bangladesh is fully dependent on imported cotton to run its spinning mills to produce yarn and with the increasing demand for more imported cotton and cotton price being volatile, many mills find the EDF limit inadequate. Moreover, spinning mills fail to get their export proceeds from the RMG factories in due time because of their reluctance or negligence in giving timely acceptance and subsequent maturity date, causing serious dislocation in the supply value chain, they added. This ultimately affects the member mills adversely in running their production at high cost thereby eroding their competitive edge over other competing countries, they observed. Considering the difficulties faced by the millers, Managing Director of Badsha Textiles Ltd Badsha Mia requested the central bank for raising the EDF limit to $25 million and also the repayment period to 270 days. He also demanded increasing the repayment period to 180 days from existing 120 days for Export Processing Zones (EPZs). Millers also demanded inclusion of C category factories in the EPZs in the EDF as they are local ones. General Manager of the central bank Kazi Sayedur Rahman described different aspects of the fund while presenting his key-note paper. Responding to the demands of the textile millers, he suggested the businesses to apply to the department concerned of the central bank requesting extension of repayment limit. “We can’t open the 270 days repayment limit for all as it will have some adverse impact on some others,” he said adding that the central bank has already allowed such facility on case to case basis. Majority of the fund is being disbursed among the garment makers, he said while presenting his paper. Some 56 per cent of the fund is availed by BGMEA, 21 per cent by BTMA, 11 per cent by BKMEA, 7.0 per cent by accessories makers and 1.0 per cent by leather sector, he added.
Source: https://www.thefinancialexpress-bd.com/2015/06/07/95589
