Ismail Hossain Country's tanners have sought Tk 4.5 billion loan from banks to facilitate the procurement of rawhides and skin of sacrificial animals during the ensuing Eid-ul Azha. Last year the tanners received Tk 3.85 billion for the seasonal procurement. "The tanners wanted more loans this year as the prices of hides have increased. We also have a plan to collect more rawhides this year," said Bangladesh Tanners Association (BTA) Chairman Md Shaheen Ahmed. Though the amount to be disbursed for the season is yet to be fixed, the state-owned commercial banks (SoCBs) sources said that the banks are ready to provide around Tk4.26 billion in loans to the tannery owners to purchase rawhides. Of the amount, Sonali Bank will disburse Tk910 million, Janata Bank Tk1.85 billion, Rupali Bank Tk500 million and Agrani Bank Tk1 billion. The banks will fix the amount in two or three days, but new loans would only be given to those who have repaid last year's loan, sources said. The BTA and Bangladesh Finished Leather, Leather Goods and Footwear Exporters' Association (BFLLGFEA) were holding a joint meeting on Thursday to set hides price for this year. The meeting was going till the filing of this report. The BTA expects the supply of hides from sacrificial animals will increase by over 20 per cent this year over last year as the politicians tend to sacrifice more animals before election in a bid to satisfy the voters by distributing meat among them. During the last Eid-ul-Azha, the collection of rawhides was 100 million square feet. This year, the target is to procure 130 million square feet as it is election year. According to BTA data, 50 to 60 per cent of total hides of the country in a year are procured during Eid-ul-Azha when animals are sacrificed. According to SoCB data, around Tk 4 billion has been stuck up in the tannery sector as default loans. Denying this claim, BFLLGFEA President elect Mohammad Abu Taher said most of the tanners have repaid the loans. A high official of Sonali Bank said the tannery owners in the past used to start lobbying on the eve of Eid-ul-Azha and create pressure on the banks for loans. But about five years ago Bangladesh Bank formulated guidelines for giving loans to the leather sector. The banks are now strictly following the policy in giving loans and facing much less pressure. Livestock ministry sources said about 18 million square feet of rawhide would be procured during Eid. The country has nearly 47.5 million domestic animals, including 23 million cattle, 1.2 million buffalo, 20 million goats and three million sheep.
Tanners seek Tk 4.5b bank loan to procure rawhide
FE Team | Published: October 04, 2013 00:00:00 | Updated: February 01, 2018 00:00:00
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