Bangladesh yarn enterprise system in trouble

Bangladesh over the past two years into a huge enterprise system yarn funds, but occurred as a result of the current global economic recession, Bangladesh yarn enterprise system in trouble. In order to tide over their difficulties, yarn enterprise system demands that the Government immediately announced that the rescue system yarn industry program.

According to the system yarn industry said that as a result of the economic downturn, 30 percent of production capacity idle, low-priced yarn imports into the domestic market, the national system of yarn enterprises have been seriously affected. They hope that the Government, like India, China and Pakistan to study, for the textile industry to develop relief programs to help businesses survive and remain competitive.

They demanded the cash incentive from the current 5% to 10%, the introduction of 5% of the R & D funds, as the practice of Pakistan. They hope that the Government announced some temporary stimulus package, once the situation improves, the Government may at any time withdraw these programs. They said that the Indian system of yarn enterprise incentive policies provided by the Government, at the same time they do not need to import cotton and into capital-intensive machinery, therefore, it is difficult for enterprises in Bangladesh and they contend. India than Bangladesh yarn offer the same low yarn prices of 10-15%.

Bangladesh Textile Mills Association said that they expected the government will be approved within one month of their recommendations. According to the latest data, in 2008 Bangladesh add 43 new spinning mills, an increase 9,44744 spindles, compared with 2007 new mill 28, a new spindles 4,42848 spindles.