The Export Policy of 2003-06 has addressed adequately the growth of agro-products and has contributed significantly to shipping those merchandises in the international market. This acknowledgement was made in a research report of Agro-based Industries and Technology Development Project (ATDP) of USAID. The report revealed that exports of agro-processed foods reached US$ 82.47 million in 2004-05, which is double the earning from this sector in the previous fiscal. The report titled, "Analysis of Export Policy 2003-06", however, cautioned against 'very high level of protection' on import items like milk powder, dairy products, sugar-based confectionery and biscuits and noted that the policy would not do good for future of export expansions. "The high level of protection has the unfortunate effect of supporting a high cost local production which is not sustainable in the long run," it warned. A workshop would discuss elaborately today (Tuesday) at the Export Promotion Bureau, the pros and cons of both Export and Import policies of 2003-06. The ATDP, government of Bangladesh and USAID will jointly sponsor the workshop. The high tariff, said the study, creates a marked bias in the incentive pattern, which pulls resources into heavily protected import substitution industries and causes an anti-export bias. For a sustained and steady growth of processed food industry, a closer attention toward further rationalisation in the tariff structure was needed. The USAID report carried out by the ATDP has found that an item enjoying high tariff protection cannot achieve competitive ability even in her own market. Its ability to compete in overseas markets even with cash assistance is not assured, the study mentioned, adding that high tariff protection needed to be time-bound and slashed down in a predictable manner. Citing opinions of the exporters, the study said that it would be helpful for them if greater information on market access were made available to them. The exporters also asked for participation in more international fairs. Export of processed agricultural products grew at a pace of 6.0 percent annually during 1980-2000. However, there were some criticisms of the export policy. The industry sources have asserted that it takes a long time to receive payments from banks, creating cash flow difficulties for them. The industry sources also expressed dissatisfaction for inordinate delays in getting the duty drawback facilities.
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