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Related Keywords: agro product, export subsidy, Jute Industry, jute yarn, raw jute, Shippers council of Bangladesh

The Bangladeshi government is being strongly urged to proclaim raw jute an agriculture product and also demanded increase in export subsidy on jute yarn which is currently 7.5 percent to 10 percent by the Shippers Council of Bangladesh (SCB).

They have also demand the government without more ado to pay Tk2.5 billion in arrears to the jute traders before the start of raw jute purchase which will begin from July.

Related Keywords: Bangladeshi jute sector, export subsidy

With the Bangladesh government releasing a total of Tk 25.92 billion as cash incentive in the fiscal year 2013-14 to encourage jute and jute goods sector. The Ministry of Textiles & Jute feels the need to increase export subsidy on jute yarn in the upcoming fiscal year to further lift exports to the international market.

The Ministry of Textiles & Jute would be putting forward proposal to the finance ministry to increase the export subsidy offered to jute sector from 7.50 percent to 10 per cent.

Related Keywords: export subsidy, Indian textile sector

Export today is an important tool for India’s economic development. As the Indian textile sector is said to have gone into the area of globally competitive as defined by WTO Law. A product is called competitive when its share reaches at least 3.25 percent in world trade for two consecutive calendar years. Indian textile sector has crossed 3.5 percent share in the global market and so it is not now eligible for export subsidy.