Recently the Bangladesh Textile Mills Association (BTMA) demanded an increase and extension to the loan limit from the Export Development Fund (EDF) for millers from the $30-million cap now to $40 million until December 2022.
Also, it demanded bringing down the interest rate of the loan to 1.75 percent. The trade body wrote a letter to Bangladesh Bank on the issue.
As per BTMA, the weaving, dyeing, printing, and finishing mills were not receiving the facility of enhanced loans from EDF.
BTMA president Mohammad Ali Khokon said, “Prices of raw materials, particularly raw cotton, yarn, dye chemicals, have increased by almost 100 percent in the global market.”
Because of that, the limit of $25 million is not enough. Based on the current price of raw materials, the limit should be $35-$45 million.
The facility should be extended till December 30, 2022, as the disruption caused by the pandemic still continues and the recovery may take two to three years more, the organization was quoted as saying by Bangla media reports.
Meanwhile, the trade body also requested the central bank to consider the proposals to facilitate the manufacturers and exporters to maintain their supply chain and sustain the local textile industry.
According to millers, along with abnormal hikes in the price of raw materials, freight fares have also increased significantly, which brought additional pressure on them.