Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) yesterday demanded 10 per cent cash incentive for at least one year to help face the challenges of the global economic meltdown.

At a press conference yesterday in its office BKMEA president Fazlul Huq yesterday also demanded uninterrupted gas-power supply and bank loan at 10 per cent interest to facilitate the sector.

Huq said, the global recession has already started to bite knitwear sector. Price of readymade garments fell by 10 per cent during the last three months. They are failing to get buyers even after reducing the prices.

He apprehended that growth of the sector might come down by 10 per cent instead of projected 20 per cent growth for the current fiscal year. Huq further said Bangladesh's competitors in knitwear sector China, India, Pakistan, Vietnam, Philippines and Indonesia had already taken different measures to help face the challenge of the economic downturn.

China has taken US$58 billion package in this regard. India has already announced US$8.1 billion package and started to pay 5 per cent subsidy from the government exchequer to bank interest. It has also devalued rupee by 24.6 per cent to facilitate export.

"Competitor countries have taken different steps to face the challenges but Bangladesh is yet to take any such steps," he said.

Replying to a question Huq said factory owners already have started to find new markets so that they can continue the growth. BKMEA has targeted Australia, Japan, Spain, and Portugal in this regard.

Huq demanded continuation of yarn import through Benapole and Chittagong port.