‘Extend adequate policy support, roll out new refinancing scheme for tannery firms’

The government should extend adequate policy support to tannery firms in Bangladesh and introduce a new refinancing scheme to help them make a comeback from the pandemic-induced business slowdown, according to a study paper and industry people.

Since the tannery firms did not receive adequate support (working capital and salary support) from the previous stimulus packages, a new refinancing scheme with flexible terms would be helpful for them, said a paper prepared by the Research and Policy Integration for Development (RAPID), a research organisation.

The paper was presented by M Abu Eusuf, a professor of the development studies department at the University of Dhaka, at a webinar titled "An Assessment of the Impact of COVID-19 on Tanneries" today.

The study is based on a worker survey involving 120 workers and an employer survey involving 20 employers.

The report said tanneries were offered loans with a 2 per cent down payment to buy rawhides and raw materials under the stimulus package of the government.

Besides, a cash support of Tk 3,000 was given to the workers of export-oriented tanneries for three months who lost their jobs.

"However, most tanneries were unable to benefit from the stimulus package because they could not meet the eligibility criteria," said the paper.

"There are some sectors where jobs can be generated quickly. The leather sector is one of them," said Syed Nasim Manzur, president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh.

"We all know about the problems the leather sector is facing. We just need to address them."

Zakia Sultana, secretary of the industries ministry, said the government is working to resolve the constraints facing the leather estate in Savar and make the effluent treatment plant fully functional.

Kazi Sakhawat Hossain, additional secretary of the industries ministry, Kazi Faisal Bin Seraj, country representative of The Asia Foundation, AKM Ashraf Uddin, executive director of the Bangladesh Labour Foundation, and Abul Kalam Azad, president of the Tannery Workers' Union, also spoke at the event. 

Md Mahbubor Rahman, chairman of the Bangladesh Small and Cottage Industries Corporation, was present.