The state-owned commercial banks will provide Tk6bn in loans to the tannery owners to purchase raw hides during the upcoming Eid-ul-Azha, said official sources.

Of the amount, Sonali Bank will disburse Tk910m, Janata Bank Tk3.44bn, Rupali Bank Tk500m and Agrani Bank Tk1bn.

Last year, the figure was Tk3.65bn. The tanners wanted more supply of loans this year as the prices of hide have increased. “The government provided TK3.65bn for the hide traders last year. But we wanted more this year to meet the increased demand as prices of hides increased,” said Bangladesh Tanners Association (BTA) Chairman Md Shaheen Ahmed.

The BTA and Bangladesh Finished Leather, Leather Goods and Footwear Exporters’ Association (BFLLGFEA) will hold today a joint meeting to set price of hides this year.

They will also discuss about the loan facility being given by the government to procure hides during the Eid-ul-Azha. “We are going to sit today with leaders of BFLLGFEA to set hide prices and discuss about the loan facility,” said BTA General Secretary Md Abdul Hai. He said the price would be set in consistent with the international price.

The BTA expects the supply of hides from sacrificial animals will increase by over 20% this year from the last year as the politicians tend to sacrifice more animals before election in a bid to satisfy the voters by distributing meat among them.

Last year in Eid-ul-Azha, the collection of raw hides was 100m sq-ft. “This year, we target to procure 130m sq-ft as it is election year,” said the BTA chairman. 

According to the BTA data, the country’s 50-60% of total hides in a year are procured during Eid-ul-Azha when animals are sacrificed.

When asked about the loans for tanners, Sonali Bank’s Managing Director Pradip Kumar Dutta said they would give credit to those clients who had been regular in repayment. “We will finance three tanneries this year as 20 out 25 tanneries became defaulters earlier.”