Uncertainty looms over hide market

Traders yet to get Tk 15cr dues

Uncertainty has gripped the hide markets in Dinajpur ahead of the Eid ul Azha this year as the suppliers have not been paid their outstanding bills amounting to Tk15 crores by the tanners.
The tanners of Dhaka and Natore owe the amount to the Dinajpur traders for purchase of hides last year.
According to an estimate of Dinajpur Hide Trading Association, the amount of total outstanding dues is nearly Tk18crores. As many as 200 hide traders of the region comprising Dinajpur, Thakurgaon, Panchagarh and Nilphamari districts supplied around 2 lakh pieces of cattle hides worth Tk15 crores  to tannery owners in Dhaka and Notore last year.
“If we do not get our dues, than it’s really difficult for us to invest more this year,” said Toyob Uddin Chowdhury, President of Dinajpur Hide Traders Association.  
The traders said that the delay in payment might have an adverse impact on the rawhide business. They further apprehended that they might have to incur huge losses if the payments are not made ahead of the upcoming Eid-ul-Azha.  The Dinajpur hide market, located at Ramnagar area in  Dinajpur municipality, the second largest rawhide market of the northern districts, wore a deserted look, which used to be vibrant every year ahead of the Eid festival.  “We initially borrow fund from local money lenders or banks at high interest rates before the Eid-ul-Azha and carry out the trade. After supplying the skin to tannery owners in Dhaka, we normally repay the loan on receiving payment for the supplied hide. But, most of the tannery owners have not paid the dues of last year,” said Monjur Rashid, a hide trader at Ramnagar market.
Akter Aziz, General Secretary of Dinajpur Hide Traders Association, said around 2 to 2.5 lakh pieces of hides of different sacrificial animals are supplied to the tanneries of Dhaka and hide market of Natore each year.
He said hide and skin traders of the district have become frustrated after incurring frequent losses. Many traders have already left their business for want of fund, he said adding if the government takes step to pay loan to the skin traders with easy terms and conditions, and low interest rate, the business may get momentum again.
Otherwise, he said, the smuggling of raw hides to India is likely to increase to the peril of local tanneries.  The traders also apprehending that hide can be smuggled to India as Dinajpur is almost encircled by India. “If the local buyers are unable to buy row hide the small traders will find it easier to sell those to buyrs in India at a better price,” he said.
Many traders have been passing hard days with their families as their cash is lying with the Dhaka and Natore based tannery owners. The outstanding grew for the political chaos last year, said the traders.
At least 80 percent hide comes from sacrificial animals in the country, said the traders. “If we get our payment today it’s possible to buy hide of sacrificial animals”, a trader said adding otherwise, the hide will be smuggled to India.

Uncertainty looms over hide market

Traders yet to get Tk 15cr dues

Uncertainty has gripped the hide markets in Dinajpur ahead of the Eid ul Azha this year as the suppliers have not been paid their outstanding bills amounting to Tk15 crores by the tanners. The tanners of Dhaka and Natore owe the amount to the Dinajpur traders for purchase of hides last year. According to an estimate of Dinajpur Hide Trading Association, the amount of total outstanding dues is nearly Tk18crores. As many as 200 hide traders of the region comprising Dinajpur, Thakurgaon, Panchagarh and Nilphamari districts supplied around 2 lakh pieces of cattle hides worth Tk15 crores to tannery owners in Dhaka and Notore last year. If we do not get our dues, than its really difficult for us to invest more this year, said Toyob Uddin Chowdhury, President of Dinajpur Hide Traders Association. The traders said that the delay in payment might have an adverse impact on the rawhide business. They further apprehended that they might have to incur huge losses if the payments are not made ahead of the upcoming Eid-ul-Azha. The Dinajpur hide market, located at Ramnagar area in Dinajpur municipality, the second largest rawhide market of the northern districts, wore a deserted look, which used to be vibrant every year ahead of the Eid festival. We initially borrow fund from local money lenders or banks at high interest rates before the Eid-ul-Azha and carry out the trade. After supplying the skin to tannery owners in Dhaka, we normally repay the loan on receiving payment for the supplied hide. But, most of the tannery owners have not paid the dues of last year, said Monjur Rashid, a hide trader at Ramnagar market. Akter Aziz, General Secretary of Dinajpur Hide Traders Association, said around 2 to 2.5 lakh pieces of hides of different sacrificial animals are supplied to the tanneries of Dhaka and hide market of Natore each year. He said hide and skin traders of the district have become frustrated after incurring frequent losses. Many traders have already left their business for want of fund, he said adding if the government takes step to pay loan to the skin traders with easy terms and conditions, and low interest rate, the business may get momentum again. Otherwise, he said, the smuggling of raw hides to India is likely to increase to the peril of local tanneries. The traders also apprehending that hide can be smuggled to India as Dinajpur is almost encircled by India. If the local buyers are unable to buy row hide the small traders will find it easier to sell those to buyrs in India at a better price, he said. Many traders have been passing hard days with their families as their cash is lying with the Dhaka and Natore based tannery owners. The outstanding grew for the political chaos last year, said the traders. At least 80 percent hide comes from sacrificial animals in the country, said the traders. If we get our payment today its possible to buy hide of sacrificial animals, a trader said adding otherwise, the hide will be smuggled to India.