Tannery owners demand Tk 5.0b loan ahead of Eid-ul Azha
Country's tannery owners urged the government to sanction Tk 5.0 billion (500 crore) loan to them 10 days ahead of the upcoming Eid-ul Azha, report agencies.
They also demanded security for trouble free procurement of hides and skins of the sacrificial animals this year.
They said the country would suffer huge losses due to smuggling of hides and skins if the nationalised commercial banks (NCBs) do not provide them adequate loans in time.
General Secretary of the Bangladesh Tannery Association Abdul Hai told newsmen that the country generate at least 200 million square feet of hides and skins in a year and about 40 per cent of the total is collected during the Eid-ul Azha.
Earlier, although the NCBs disbursed Tk 1.92 billion as loan among tannery owners for purchase of hides and skins during Eid last year, many owners had to face problems to have loan in due time.
The banks did not give any loan to the defaulters following the directives of the Bangladesh Bank last year, bank sources said.
The tannery industry, an important export-oriented sector in the country employing 25,000 workers, earned about Tk 17 billion from leather export this year.
Some tannery leaders, however, claimed that a section of unscrupulous traders also increase the price of skins following the disbursement of sufficient loans.