Tanners expect hefty business this time

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Sheikh Shahariar Zaman
The tanners are expecting a brisk business this time around as the world economy is showing signs of recovery and the prices of hide and skin are low in the domestic market.
Export orders are picking up as there is a turnaround in the world economy, Rezaul Karim Ansari, president of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association told the FE Monday.
The tanners have fixed the price of cow hide at Tk 30 per square feet and goat skin from Tk 18 to Tk 20. It was Tk 35 for cow and Tk 25 for goat skins last year.
The tanners will start buying hide and skin in full swing from next week after the arrival of the collection in the capital city from different parts of the country.
"So far, the tanners have procured only a fraction," Mr Karim said.
"We expect a better collection this year, as the price of sacrificial animals was relatively low," he said.
A total of 2.8 million cows, 8 million goats and 65,000 buffaloes were sacrificed last year, he said.
Mr Karim said leather export volume is gradually picking up as they are now receiving orders from international buyers.
"It's regrettable that the value of leather products is not increasing at all. Since 2008, the value decreased by 45 to 50 per cent due to the global recession," he said.
Regarding the High Court directive on relocation of the tanneries to Savar by 2010, he said the tanners need more time to shift their establishments.
"We have appealed to the High Court and held meetings with finance, commerce and industries ministers and received assurance of government's help in this regard," he said.
The main reason behind the relocation order is to stop pollution and if there is no effluent treatment plant (ETP) in Savar the tanners will continue to pollute the environment, he pointed out.
The government has floated tender to set an ETP in Savar Industrial Area.
"We want to relocate as it is not possible for us to increase the capacity of our tanneries in Hazaribagh," Mr Karim said.
The relocation of tanneries to Savar will generate about 0.4 million new jobs whereas, the tanners now employ only 65,000 workers, he added.
There are 194 tanneries in Hazaribagh area, two in Chittagong and one in Jessore.
Chairman of Bangladesh Tanners Association Shaheen Ahamed said the government should provide unconditional cash incentives to the exporters.
The government has declared 5 per cent cash incentive under a stimulus package for the tannery sector.
The tanners expect to earn about $200 million in export in the current fiscal, he said.
In 2007-08, the country earned $284 million by exporting leather goods and in 2008-09 the amount fell to $177 million.
Meanwhile, three state-owned commercial banks would jointly disburse Tk 3.88 billion as loan for the purchase of rawhide of sacrificed animals.
Sonali Bank has approved Tk 655 million this year, Janata Bank Tk 1.80 billion, up by Tk 150 million from the previous year.
Agrani Bank is expected to disburse a total of Tk 1.43 billion this year as against Tk 1.25 billion last year.