rawhide trade

Unsold stock, bank loans deal hard blow

Hide exports till June 2018 are 21pc less compared to the same period last year, according to sources

At least 45 per cent of last year’s rawhides remain unsold with tanners failing to sell them due to various reasons. Bangladesh Tanners’ Association (BTA) has set an estimated target to collect about 80 lakh pieces of rawhides this year, which is the same as last year, BTA leaders told The Independent.

Meanwhile, like in previous years, four state-owned banks would provide 24 entities with credit facilities worth around Tk 1,800 crore to purchase rawhide on the occasion of Eid-ul-Azha.

According to sources, the export prospects of the tannery sector are currently bleak due to volatile international market conditions. Hide exports were 21 per cent less till June 2018 as compared to the same period last year, sources added.

“About 45 per cent of rawhides procured during last year’s Eid-ul-Azha are still lying unsold. Many tanners have failed to adjust their bank loans because of the shifting of their factories from Dhaka’s Hazaribagh area to Savar Tannery City—one of the major reasons for the funds crisis,” M Shakhawatullah, BTA general secretary, said.

Plus, most of the international buyers have left the country and, therefore, BTA was finding it difficult to sell rawhides, he added.

Shakhawatullah informed that the financial condition of the tannery owners was also not sound at present. “We are not getting banking facilities to procure rawhides of sacrificial animals. The banks are not giving loans through third party mortgage as most of the tannery owners have already spent their money to construct new factories at Savar Tannery City after relocating them from Hazaribagh,” he said.

“There has been nearly 22 per cent decline in the export volume this year due to a volatile condition in the international market. Besides, 45 per cent of last year’s rawhides still remain unsold. Despite these hurdles, we have decided to procure 80 lakh pieces of rawhides during Eid-ul-Azha this year,” he added.

Bangladesh earned $ 1.08 billion in FY2016–17 from the leather sector, he said.

On their part, the executives of state-owned banks—Sonali, Rupali, Agrani and Janata—said they would provide leather businesses loan facilities for ensuring the collection of a maximum number of rawhides, a major export item.

They also said that the traders would get loans at the rate of 9 per cent interest for purchasing rawhides.

Of the banks, Janata Bank would provide the highest amount of Tk 1,300 crore, including previous loan renewal for nine to 10 business institutions this year. Of this amount, Tk 200 crore will be disbursed as new loans.

Besides, Rupali Bank will provide loans worth Tk 250 crore, Agrani Tk 160 crore and Sonali the rest Tk 70 crore this year.

Meanwhile, the government has kept the prices of rawhides of sacrificial animals for Eid-ul-Azha unchanged from those in the previous year. The price for per square foot of cowhide in Dhaka has been fixed at Tk 45–50, while it’s Tk 35-40 for the rest of the country. Besides, the price of male goat hide has been fixed at Tk 18-20, while that of

female goat is Tk 13-15 this year. According to the department of livestock services (DLS), the country has 1,17,88,563 aforementioned sacrificial animals, against the demand of around 70 lakh.

rawhide trade

Unsold stock, bank loans deal hard blow

Hide exports till June 2018 are 21pc less compared to the same period last year, according to sources

At least 45 per cent of last years rawhides remain unsold with tanners failing to sell them due to various reasons. Bangladesh Tanners Association (BTA) has set an estimated target to collect about 80 lakh pieces of rawhides this year, which is the same as last year, BTA leaders told The Independent. Meanwhile, like in previous years, four state-owned banks would provide 24 entities with credit facilities worth around Tk 1,800 crore to purchase rawhide on the occasion of Eid-ul-Azha. According to sources, the export prospects of the tannery sector are currently bleak due to volatile international market conditions. Hide exports were 21 per cent less till June 2018 as compared to the same period last year, sources added. About 45 per cent of rawhides procured during last years Eid-ul-Azha are still lying unsold. Many tanners have failed to adjust their bank loans because of the shifting of their factories from Dhakas Hazaribagh area to Savar Tannery Cityone of the major reasons for the funds crisis, M Shakhawatullah, BTA general secretary, said. Plus, most of the international buyers have left the country and, therefore, BTA was finding it difficult to sell rawhides, he added. Shakhawatullah informed that the financial condition of the tannery owners was also not sound at present. We are not getting banking facilities to procure rawhides of sacrificial animals. The banks are not giving loans through third party mortgage as most of the tannery owners have already spent their money to construct new factories at Savar Tannery City after relocating them from Hazaribagh, he said. There has been nearly 22 per cent decline in the export volume this year due to a volatile condition in the international market. Besides, 45 per cent of last years rawhides still remain unsold. Despite these hurdles, we have decided to procure 80 lakh pieces of rawhides during Eid-ul-Azha this year, he added. Bangladesh earned $ 1.08 billion in FY201617 from the leather sector, he said. On their part, the executives of state-owned banksSonali, Rupali, Agrani and Janatasaid they would provide leather businesses loan facilities for ensuring the collection of a maximum number of rawhides, a major export item. They also said that the traders would get loans at the rate of 9 per cent interest for purchasing rawhides. Of the banks, Janata Bank would provide the highest amount of Tk 1,300 crore, including previous loan renewal for nine to 10 business institutions this year. Of this amount, Tk 200 crore will be disbursed as new loans. Besides, Rupali Bank will provide loans worth Tk 250 crore, Agrani Tk 160 crore and Sonali the rest Tk 70 crore this year. Meanwhile, the government has kept the prices of rawhides of sacrificial animals for Eid-ul-Azha unchanged from those in the previous year. The price for per square foot of cowhide in Dhaka has been fixed at Tk 4550, while its Tk 35-40 for the rest of the country. Besides, the price of male goat hide has been fixed at Tk 18-20, while that of female goat is Tk 13-15 this year. According to the department of livestock services (DLS), the country has 1,17,88,563 aforementioned sacrificial animals, against the demand of around 70 lakh.