"If the government injects subsidy in the form of withdrawing value added tax (VAT) on the utility bills, it will help make the local products more competitive," the exporters said making a plea for increasing competitiveness of local goods.

The exporters made the demand at a recent meeting with the policymakers in Dhaka.

The exporters also demanded a comprehensive national export strategy to achieve the export target of US$10.15 billion for the fiscal year 2005-06.

Commerce Minister Altaf Hossain Choudhury, Commerce Ministry Adviser Barkat Ullah Bulu and Commerce Secretary Faruq Ahmed Siddique participated in the meeting from the government side.

Among the exporters, President of Bangladesh Frozen Foods Exporters Association Maqsudur Rahman, Chairman of Bangladesh Finished Leather, Leather Goods & Footwear Exporters' Association Tipu Sultan and Vice Chairman of Bangladesh Garment Manufacturers and Exporters Association (BGMEA) Saidul Islam were present.

The country traditionally follows theoretical export strategies rather than practical ones, resulting in non-diversification of exports, the exporters pointed out.

Frozen food exporters called for withdrawal of ban on export of frog leg, considering its huge demand and high prices in the international market. They also demanded the government to allow export of small species of shrimp.

Leather goods exporters demanded withdrawal of incentive on raw hide export and insisted on selling leather to shoe and leather goods exporters at subsidised rates.

If the government gives incentive to value added leather goods, it will help double export earning from the sector within the next few years, they hoped.

They also urged the government to take steps so that Bangladeshi leather goods' duty free access to Japanese market continues.

The commerce ministry has decided to hold a separate inter-ministerial meeting soon to fulfil the demands.

The ministry, however, urged the exporters to maintain the export growth of 17.39 percent in the next financial year.

The ministry officials informed the meeting that 70 percent of the import bills were paid from export earnings in the FY2004-05.