Leather industry fears losses

Raw leather traders are worried about the lockdown after Eid-ul-Adha. According to the government decision, all types of industries, including garment factories, will be closed during the lockdown. Although tanneries, leather shops and seasonal wholesale leather sellers will store raw leather during this time. However, due to the lockdown, those concerned are in doubt about the storage and transportation of leather.

Those involved in the leather business said that the strict lockdown will resume from July 23 after Eid. The government has decided to close all types of industrial factories during the lockdown. But since the day of Qurbani, raw hides have been stored in different parts of the country and the main location and all tanneries are in Dhaka, raw hides from different parts of the country will have to reach Dhaka. There are about 250 tanneries and several thousand shopkeepers in the country to store these raw hides. A large number of workers and employees are involved in the process of storing raw hides and they earn their living by doing this work. Those involved said that although the government announced a strict lockdown after Eid, it has not clarified the issue of the leather industry.

They strongly demanded the government to keep the leather industry running by following the health rules. Md. Muslim Uddin, president of the Chittagong City Corporation Raw Leather Traders Association, said, "The leather industry should be kept out of the lockdown after Eid. We want to work to preserve leather by following the health rules. If the leather industry is not kept out of the lockdown, those involved in this industry will suffer."

Mohiuddin Ahmed Mahin, chairman of the Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association, told Ittefaq that the period after Eid-ul-Adha is important for those involved in the leather business. During this time, tannery owners and storekeepers store raw leather. In the larger interest, the leather industry should be kept free from the lockdown.

Meanwhile, on the occasion of Eid-ul-Adha, all those involved in the leather industry, including tanners, have already made all preparations to collect raw hides. The price of raw hides has also been fixed by the government. However, tanners complain that they are in a capital crisis and cannot get bank loans. In addition, tannery owners owe crores of taka. As a result, tanners are in financial crisis due to the collection of raw hides. Several tanners said that some tanneries in Dhaka owe around 250 million taka in 2015. The amount of money has increased further with subsequent arrears. Even though tanners get loan facilities to collect hides, they do not pay half of the price to tanners. This time, there is a target of collecting around 5 lakh raw hides in Chittagong.

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