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Leather sector traders have requested an opportunity for loan interest waiver during a meeting with the finance adviser.
The Bangladesh Finished Leather, Leather goods and Footwear Exporters' Association met Finance and Commerce Adviser Salehuddin Ahmed at the Secretariat On Sunday.
The association’s Chief Adviser MA Rashid Bhuiyan told reporters, "We didn’t ask for money. We were moved from Hazaribagh to Savar. They declared those areas (Hazaribagh) as red zones. We couldn’t run our business there (in Savar).
“The CETP (Central Effluent Treatment Plant) is not functioning properly. The infrastructure is incomplete. We’ve informed the advisor about these issues. He has assured us that a solution will be provided."
When asked by journalists about the demands they presented, the business leader said, "Our demand is to fix the CETP. It’s because of them that we have been harmed. That's why we’ve asked for a waiver of the interest on our loans and to reschedule them."
Association Chairman Mohiuddin Ahmed Mahin said, “The companies in the BSCIC industrial city are 100 percent export-oriented. We have been given all kinds of licences for export. Due to the incomplete CETP, we are currently forced to sell to China at 70-80 per cent less than the international market price. If we can increase the value addition, we will be able to go back to purchasing leather at the previous prices, such as Tk 2,000 in 2015-2016.”
He added, “The participation of tannery owners in the BSCIC industrial city was appropriate. The failure occurred due to the government organisation BSCIC. Therefore, in no way can the tannery owners be blamed for this failure. The finance advisor listened to us and assured us that the problems would be resolved.”
After the meeting, Adviser Salehuddin told reporters, “Today, we spoke with the leather, leather goods, and footwear exporters association. The leather sector is extremely important because of its significant demand both in exports and domestically."
“We’ve discussed various issues related to the sector’s potential and challenges. The tanneries have been relocated to Savar. We discussed environmental concerns, financing, and leather certification for exports,” the adviser said.