Tanners in Bangladesh will receive capital aid of Tk259 crore from banks to facilitate the procurement and preservation of rawhides during the upcoming Eid-ul-Azha season, as per sources from the central bank. Tannery owners had requested a loan facility of Tk500 crore from the commerce ministry, but banks hesitated due to defaults on previous loans. Consequently, they sought government assistance for loan approvals. The determined loan amount for this year is Tk184 crore lower than the previous year, with both public and private banks participating in the disbursement process. State-owned banks will contribute the majority of the loan amount, including Tk25 crore from Sonali Bank, Tk100 crore from Janata Bank, Tk35 crore from Rupali Bank, and Tk80 crore from Agrani Bank. The remaining funds will be disbursed by private banks. The loans aim to support tannery owners who require additional capital during the Eid-ul-Azha season when a substantial number of animals are sacrificed. Proper management of rawhides is crucial to prevent wastage, as the leather industry plays a significant role in foreign currency earnings and national growth. Leather exports have been steadily increasing, and government support is needed to sustain this growth and meet export targets. In the fiscal year 2022-23, leather product exports generated $1,120 million in revenue, nearing the government’s set target.
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