Tanneries face uncertainty

Most of the tanneries already are no more in operation.

Being unable to withstand the loss and failing to realise arrears, at least 10 out of 15 leather processing tanneries in Chittagong have kept their shutter down, sources said.

Besides, a slump in export has frustrated 200-plus wholesalers.

Three foreign buyers -- Hong Kong, Italy and Germany -- have stopped importing leather from Bangladesh.

The slump began in the first quarter of last year when Hong Kong, the largest importer, had stopped buying leather from the country following the outbreak of Sars virus in different countries of the region.

Two other importers, Italy and Germany, followed suit for the same reason and reduced import volume.

Another reason for collapse of the industry here is lack of modern technology and machinery, said Mohammad Lokman, a tannery owner at city's Aturer Depot area.

"We are accustomed to exporting wet blue (hair-free) leather. But the scenario has been changed abroad as the international demand for wet blue leather has reduced significantly," he said.

"Foreign buyers have been importing finished leather or crust instead of wet blue for the last few years and thus kept Bangladesh far behind in the race," he added.

Six tanneries located at Kalurghat area and four at Aturer Depot, the largest market for raw leather in this region, were closed being unable to install modern technology in their industries, sources said.

The wholesalers of Chittagong who supplied unfinished (raw) leather to the exporters in Dhaka were not getting their sales proceeds back, sources added.

"The Dhaka-based traders owe Tk 105 crore to these wholesalers," said a tannery owner at Kalurghat. "This huge unpaid amount was another reason that forced some of us to close our industries," he added.

He said, "Three Dhaka-based parties owe me Tk 25 lakh for long, which is creating a problem in running my industry smoothly."

"I will be compelled to close down my tannery if they do not pay my money within six months or so," he said.

The tannery owners urged the government to provide backup facilities, including modern technology, to help sustain the industry.