BJGEA members to get 20% cash incentive for diversified goods exports

The Ministry of Commerce has allowed Bangladesh Jute Goods Exporter Association (BJGEA) to issue certificates/testimonies to its members to receive a 20 per cent cash incentive for the production and export of diversified jute products.

The ministry granted the authority to BJGEA experimentally for the next two years, a release from the ministry said on Monday.

Upon observation, if the ministry deems BJGEA’s actions satisfactory, the association may get the authority permanently, the release added.

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BJGEA Director and Tulika ECO CEO Esrat Jahan Chowdhury said she was content on the decision taken by the government to business and expand the export of diversified jute goods.

"It is good news to us. Previously, we could not claim a 20 per cent cash incentive because these facilities were only limited to Bangladesh Jute Mills Association members.

“But to get their membership, exporters had to meet many criteria which were quite difficult to most cottage entrepreneurs. But now, every exporter can be eligible for a 20 per cent cash incentive," she remarked.

The ministry in June 2016 formed a committee to define diversified jute goods and prepare a list of items to be eligible for the 20 percent cash subsidy against exports.

Then in April 2017, textile and jute ministry listed 232 diversified jute products to boost exports of goods made from the natural fibre, said a senior official.

The move came as many jute goods producers were facing problems in receiving cash incentive in the absence of any list of diversified jute products and any definition of diversified jute goods.

To enjoy the benefit, exporters had to get certification from Jute Diversification Promotion Centre that their products are diversified jute goods.