Bangladesh Doubles Cash Subsidy On Potato Exports


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April 21, 2010 11:26 a.m. EST

Topics: politics, regulatory policy and organization, economy, business and finance, arable farming, agriculture, World
Siddique Islam - AHN News Correspondent

Dhaka, Bangladesh (AHN) - The Bangladesh government has doubled cash incentives to 20 percent against exports of potatoes to encourage exporters, officials told AHN Media Wednesday.

Potato exporters will receive the subsidy against the net repatriation of the free-on-board (FOB) prices of their products between April 1 to June 30, according to a circular issued by the central bank of Bangladesh.

“The government has doubled cash incentive on potato exports following bumper production of the perishable item. It will also help to ensure fair prices of the vegetable,” said a senior official of Bangladesh Bank, the country's central bank.

The official said the subsidy would be re-fixed to 10 percent from the existing 20 percent for fiscal 2010-11.

Last week, the government allowed cash incentives at 5.0 percent against exports of crust leather and shipbuilding to facilitate the exporters of those sectors.

The government earlier announced a list of 15 exportable products that would receive the cash subsidy for the current fiscal year.


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