Bangladesh Textile Mills Association (BTMA) on Saturday described the discrepancies in export figures as a ‘conspiracy’ against the apparel and textile sector, alleging that certain individuals influenced the government to reduce cash incentives by presenting inflated export growth.

Speaking at a press conference at the trade body’s office in the city, BTMA President Mohammad Ali Khokon accused some of misleading the Prime Minister and policymakers to curtail benefits for the textile sector, with the intention of making Bangladesh reliant on foreign yarns and fabrics.

Khokon emphasized the critical importance of maintaining cash incentives at their previous levels, warning that any reduction would severely jeopardize the country’s textile industry.

He called upon the government to revoke the Bangladesh Bank circular issued on June 30, which slashed cash incentives for the apparel and textile sector by 50 percent.

Regarding inflated export data, the business leader said that they raised this issue at a Bangladesh Bank meeting, highlighting that export figures were being reported higher than reality, but the governor reprimanded them.

During the meeting, the BB governor claimed that despite growth, exporters and textile millers were reporting lower growth figures, Khokon said.

Now it has been revealed that the exports were indeed lower, BTMA president said.

Recently, Bangladesh Bank revised the country’s export earnings data downward by over $12 billion for the July-April period of the financial year 2023-24.

Khokon criticized the rationale behind reducing cash incentives prematurely due to Bangladesh’s anticipated graduation from Least Developed Country status in November 2026, arguing that adequate time remains for continued support until 2029.

Khokon pointed out that the government’s decision to reduce cash incentives comes at a time when the industry faces multiple challenges, including severe gas shortages despite a 250 percent price hike, high bank interest rates, and increased wages.

He warned that cutting export incentives could hinder progress in the apparel and textile sector, potentially leading to its decline, similar to the challenges faced by the jute sector.

Drawing a parallel with India’s approach, Khokon highlighted that India, which graduated in 2004, continues to support its textile sector through various policy measures and incentives as alternatives to cash incentives.

He expressed concerns that without similar support measures, reduced incentives could undermine competitiveness and jeopardize the viability of textile mills.

Khokon urged the reinstatement of cash incentive supports at previous rates until alternative policies are implemented.

He also called for a timely formulation of a comprehensive textile policy, similar to India’s, and proposed a one-year grace period for loan repayments to support the sector.