Dhaka, Dec. 27 -- Apparel exporters have called for the restoration and re-fixing of cash incentives on the use of local yarn, citing the deteriorating condition of domestic spinning mills and the need to improve export competitiveness.

They have proposed restoring the cash incentive on the use of local yarn in export-oriented apparel production to 5.0 per cent through apparel exporters. The incentive earlier stood at 4.0 per cent before being reduced to 1.5 per cent as part of government preparations for Bangladesh's graduation from the least developed country (LDC) status.

Exporters also decided to request the government to provide a direct 10.0 per cent incentive to spinners as an alternative support measure.

At a closed-door meetin...