The Bangladesh government has alleviated the local textile and readymade garment (RMG) manufacturers’ value addition benchmarks to get the export subsidies.

According to a recent circular issued by Bangladesh Bank, the RMG manufacturers will now get an export subsidy for 20% value addition, which was previously set at 30%. As a result, the textile and apparel exporters will now get a 4% cash incentive for a 20% value addition.
The value addition criteria is summed up by subtracting the import price of materials from the net export price of the apparel products.