Balikandi leather hub going bust
Balikandi of Moulvibazar sadar upazila has a long history of being a hub for leather trade in the greater Sylhet division. Even a few years ago, hundreds of people were making a living out of it.
But a downturn in business over the last couple of years has driven nearly all the traders out of business.
With the rising number of Covid-19 infections, most are sceptical over whether buying sacrificial animal skins would be a wise decision in the upcoming Eid-ul-Azha.
Seasonal traders said to have discarded a huge amount of rawhide last year for the prices being too low for a dearth of demand.
They said frustration had grown over not being able to recoup investments behind collecting the rawhide from general people and conducting initial processing for preservation.
According to the Department of Livestock services, 55,164 bulls, 228 buffaloes, 25,009 goats and 750 sheep were sacrificed in Moulvibazar district last year.
This year there is a potential demand for 73,035 sacrificial animals.
"I can't buy the rawhide this time. What will I do afterwards? I am not willing to appoint a workforce as there are chances of incurring losses," said trader Jahangir Alam.
Moreover, there are apprehensions that those working at the field level could contract the virus, he said.
This situation arose as tannery owners have not paid their arrears, said Shibbir Ahmed, a seasonal trader of Moulvibazar town. If this situation continues, it will be difficult to sustain this business, he said.
Due to a lack of buyers and of cooperation from the district administration, the rawhides could not be sold at the government set rate of Tk 28 per square feet, said another trader Monsur Mia.
"We had to sell whatever was left three months later at Tk 10 to Tk 12 per square feet. We lost several lakh taka. We fear there would be a repeat of last year's situation," he said.
"It is the business of fathers and grandfathers, so I can't turn away during Eid. But how can we buy leather? The tannery owners do not pay our dues," said Elim Ahmed, publicity secretary of Balikandi Leather Traders Association.
The association president, Mohammad Shawkat, said he had been involved in the leather business since he was about 12 years old.
Even a few years ago, there were 150-200 leather traders in Balikandi. At present, there are five or six, he said.
"We have lost crores of taka in the last few years due to the collapse of the leather business," he said.
Prior to Eid-ul-Azha of 2020, the deputy commissioner of Moulvibazar held a meeting with the leather traders, promising to buy salt and facilitate bank loans, he said.
"But leather traders did not get any bank loan. After two-and-a-half to three months, I was forced to sell the perishable skin for Tk 8 to Tk 10 per square feet. I have lost Tk 4 lakh," he added.
"Since 2014, the leather business has been suffering from losses every year due to continuous collapse of demand," said the association joint general secretary, Hafiz Anwar Hossain.
"I am yet to be paid Tk 10 lakh by a tanner in Natore district for the last eight years. In this situation, we could not muster up the courage to buy rawhide in 2020 due to a lack of capital," he said.
"Later, on the assurance of the Moulvibazar deputy commissioner, I borrowed some money and bought 2,600 pieces of rawhide," he said.
The investment per square feet was about Tk 20 but it was sold at Tk 8 to Tk 10. "I have lost several lakh taka. So I have no interest in buying rawhide this year," he said.
Deputy Commissioner Mir Nahid Ahsan said banks were not providing any loans for the leather business but the district administration was always at hand to support the traders.