Dhaka, Feb. 4 -- The Ministry of Finance has formed a technical committee to identify and evaluate policy options to address the ongoing yarn issue involving local spinners and garment exporters, meeting sources said.

The committee has been tasked with assessing three possible cash incentives for local yarn and excluding bonded facility for yarn imports and submitting its recommendations within the next 10 working days.

Under the proposals now being reviewed, the government may de-bond yarn imports while providing a 5 per cent cash incentive to readymade garment (RMG) exporters for using locally produced yarn. Another option under consideration is providing a 10 per cent cash incentive to local spinning mills along with a 3 per cent inc...