“Banks usually charge 15-16 percent interest. And, it is not easy to get loans without spending extra 5 percent….. for all … from top to bottom,” said Eliasur Rahman, vice chairman of Bangladesh Tanners Association and owner of Arab Tannery Pvt Ltd. He said tanners normally procure hide and skins once in a year during the Eid-ul-Azha. “Those who will fail to buy rawhide during Eid won’t be able to do business rest of the year,” Rahman said. Md. Nurul Alam, owner of Progoti Leather, said the tanners are not getting fresh loan from banks. “The banks even don’t pay heed to Bangladesh Bank’s circulars,” he alleged. Local traders estimate that Bangladesh produces around 1 crore pieces of high-quality animal hides during the Eid-ul-Azha. According to International Council of Tanners (ICT), Bangladesh’s annual leather production was 148.1 million square feet during the period of 1998-2006. Bangladesh ranked 20 among the top 30 leather manufacturing countries in the world as per the ICT list. However, the industry insiders say the domestic use of raw hide and skin is currently 40 percent only while the rest is being exported. Rahman said Bangladesh produces high quality of raw hide and skins during the Eid-ul-Azha. “The growth and increase in export of products of local footwear industry is mainly driven by the availability of high quality rawhide and skins,” he said. According to the Export Promotion Bureau (EPB), Bangladesh fetched $1124.17 million from export of leather and leather products in FY 2013-14. Of the total amount, $505.54 million came from raw hide and skins (leather), $240.09 million from leather products and $378.54 million leather footwear exports. Data show that raw hide and skins exports declined by 5.23 percent in FY 14 compared to FY 13, but income from exports of leather products and leather footwear soared by 58.03 percent 18.74 percent respectively from the previous fiscal. Meanwhile, the global trade of untanned hides and skins has soared by 18 percent by volume and 60 percent by value, to be worth $4.3 billion annually. Similarly, trade in the leather industry has jumped by 140 percent by volume and 240 percent by value, to $ 9.5 billion annually, the ICT data show.
Sunday, September 28, 2014
Tannery owners suffer for cash crunch:Daily Sun
“Banks usually charge 15-16 percent interest. And, it is not easy to get loans without spending extra 5 percent….. for all … from top to bottom,” said Eliasur Rahman, vice chairman of Bangladesh Tanners Association and owner of Arab Tannery Pvt Ltd. He said tanners normally procure hide and skins once in a year during the Eid-ul-Azha. “Those who will fail to buy rawhide during Eid won’t be able to do business rest of the year,” Rahman said. Md. Nurul Alam, owner of Progoti Leather, said the tanners are not getting fresh loan from banks. “The banks even don’t pay heed to Bangladesh Bank’s circulars,” he alleged. Local traders estimate that Bangladesh produces around 1 crore pieces of high-quality animal hides during the Eid-ul-Azha. According to International Council of Tanners (ICT), Bangladesh’s annual leather production was 148.1 million square feet during the period of 1998-2006. Bangladesh ranked 20 among the top 30 leather manufacturing countries in the world as per the ICT list. However, the industry insiders say the domestic use of raw hide and skin is currently 40 percent only while the rest is being exported. Rahman said Bangladesh produces high quality of raw hide and skins during the Eid-ul-Azha. “The growth and increase in export of products of local footwear industry is mainly driven by the availability of high quality rawhide and skins,” he said. According to the Export Promotion Bureau (EPB), Bangladesh fetched $1124.17 million from export of leather and leather products in FY 2013-14. Of the total amount, $505.54 million came from raw hide and skins (leather), $240.09 million from leather products and $378.54 million leather footwear exports. Data show that raw hide and skins exports declined by 5.23 percent in FY 14 compared to FY 13, but income from exports of leather products and leather footwear soared by 58.03 percent 18.74 percent respectively from the previous fiscal. Meanwhile, the global trade of untanned hides and skins has soared by 18 percent by volume and 60 percent by value, to be worth $4.3 billion annually. Similarly, trade in the leather industry has jumped by 140 percent by volume and 240 percent by value, to $ 9.5 billion annually, the ICT data show.
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