Economic Reporter :
Commerce Ministry is sitting with the leaders of Bangladesh Hide and Skin Merchants Association (BHSMA) and Bangladesh Tanners Association (BTA) today to resolve ongoing crisis between the two organizations.
The meeting is scheduled to be held at 3:00 pm and the Commerce Minister Tipu Munshi will preside over it.
Seasonal traders alleged merchants offered them far below the government-fixed prices of rawhide during Eid this time.
The crisis reached the peak when the merchants stopped buying rawhide from the seasonal traders claiming they were out of funds due to unpaid bills from the tanners.
The leaders of the BHSMA on Saturday announced to keep the rawhide sales suspended until its meeting with the commerce ministry is held. The suspension is mainly to collect their previous dues from the tanners.
BHSMA President Md Delwar Hossain made the announcement at a press briefing after a meeting at its Lalbagh office.
“Such a situation (fall in prices) was never created in the country in the past. We are sorry for this unusual situation here,” he said.
About the government’s decision to lift ban on rawhide export, he said they were yet to get any directive from the ministry. “We will abide by all the government’s decisions,” he added.
Delwar, however, said they are not prepared for rawhide export as they have no licenses to this end.
He further said the current situation has been created for non-payment of arrears by tannery owners. “We couldn’t spray salt on rawhide for cash crunch. So, huge rawhide got rotten this year. If tannery owners pay the arrears, the situation will improve,” he said.
On the other hand, the leaders of the BTA said it is not possible to pay all the dues at the moment.
Meanwhile, as per pre-announcement, the owners of the tanners started to buy rawhides and skins of sacrificial animals from Saturday.
BTA General Secretary and the Owner of Salma Tannery Shakhawat Ullah said, “We formally started to buy rawhides at government-fixed price and it will continue till next two months.”
At the press conference on Wednesday, BTA expressed deep concerns over the government’s decision to allow rawhide exports, on the grounds that it might pose a major threat to local leather industry.
“Our investment worth of Tk 70 billion will be affected if the government allows exports of rawhide,” the association’s President Shaheen said, urging the government to withdraw the decision.
“Leather industries in Savar would be affected as rawhide export will make the raw material less available in the domestic market. Many of those involved with the trade will lose their jobs,” he said.
He also denied the allegation of Tk 3 billion in unpaid bills and said, “The merchants are citing the allegation to buy rawhides cheap. They are manipulating the market.”
Commerce Ministry is sitting with the leaders of Bangladesh Hide and Skin Merchants Association (BHSMA) and Bangladesh Tanners Association (BTA) today to resolve ongoing crisis between the two organizations.
The meeting is scheduled to be held at 3:00 pm and the Commerce Minister Tipu Munshi will preside over it.
Seasonal traders alleged merchants offered them far below the government-fixed prices of rawhide during Eid this time.
The crisis reached the peak when the merchants stopped buying rawhide from the seasonal traders claiming they were out of funds due to unpaid bills from the tanners.
The leaders of the BHSMA on Saturday announced to keep the rawhide sales suspended until its meeting with the commerce ministry is held. The suspension is mainly to collect their previous dues from the tanners.
BHSMA President Md Delwar Hossain made the announcement at a press briefing after a meeting at its Lalbagh office.
“Such a situation (fall in prices) was never created in the country in the past. We are sorry for this unusual situation here,” he said.
About the government’s decision to lift ban on rawhide export, he said they were yet to get any directive from the ministry. “We will abide by all the government’s decisions,” he added.
Delwar, however, said they are not prepared for rawhide export as they have no licenses to this end.
He further said the current situation has been created for non-payment of arrears by tannery owners. “We couldn’t spray salt on rawhide for cash crunch. So, huge rawhide got rotten this year. If tannery owners pay the arrears, the situation will improve,” he said.
On the other hand, the leaders of the BTA said it is not possible to pay all the dues at the moment.
Meanwhile, as per pre-announcement, the owners of the tanners started to buy rawhides and skins of sacrificial animals from Saturday.
BTA General Secretary and the Owner of Salma Tannery Shakhawat Ullah said, “We formally started to buy rawhides at government-fixed price and it will continue till next two months.”
At the press conference on Wednesday, BTA expressed deep concerns over the government’s decision to allow rawhide exports, on the grounds that it might pose a major threat to local leather industry.
“Our investment worth of Tk 70 billion will be affected if the government allows exports of rawhide,” the association’s President Shaheen said, urging the government to withdraw the decision.
“Leather industries in Savar would be affected as rawhide export will make the raw material less available in the domestic market. Many of those involved with the trade will lose their jobs,” he said.
He also denied the allegation of Tk 3 billion in unpaid bills and said, “The merchants are citing the allegation to buy rawhides cheap. They are manipulating the market.”
