Eid-ul-Azha, the festival of sacrifice, is scheduled to be celebrated early September. The central effluent treatment plant (CETP) at the Savar estate is unlikely to be fully ready to preserve and process hides and skins by that time.
At stake is the proper handling of 3.5 million to 4.0 million pieces of hides and skins usually available on the occasion. A vast market of Tk 100 billion is now facing a challenge.
Reports have it that work on infrastructure of the CETP is proceeding very slowly. The Chinese company, which is the contractor of the project, has asked for more time to complete the work. Although water and power are available, gas connection has not yet been provided. Among 154, only 62 units have started production. Seventy-seven units have set up tanning drums while 72 units have applied for power connection. Only 20 units have got gas connection. Water is being supplied to 55 units.
After the closure of tanneries at Hazaribagh, factories started moving to Savar but at a very slow pace. The entrepreneurs are worried about the fate of raw hides and skins before the next Eid. The tannery owners too have no preparation. Those, who are associated with the tannery project, hope to start operation in hundred units before Eid.
About 50 per cent of the country's total hides and skins are collected during Eid-ul-Azha. But half of the factories are not yet ready for processing those. Tannery owners may not be able to buy hides and skins because they are spending money on infrastructure. This will give an opportunity to the stockists (aratdars) to buy skins and build stocks.
In order to preserve 3.5 million to 4.0 million pieces of skins during Eid-ul-Azha, 30,000 tons of salt would be needed. Considering the requirement, the Ministry of Commerce has allowed import of 5,00,000 tons of salt. But the total quantity might not be imported before Eid. Therefore, there may be a crisis. Skin traders must import this salt in time to avoid crisis. Skins may be rotting for want of preservation.
PROJECT HISTORY: The tannery project was approved by the Executive Committee of the National Economic Council (ECNEC) on August 16, 2003. The work was to be completed by 2005. The project was amended and extended up to 2010. The tenure of the project was again extended to 2012. The final approval was given in 2013. The project is being implemented by the Small and Cottage Industries Corporation on behalf of the Ministry of Industries.
The project authorities have said the progress of work of CETP is not satisfactory. The Chinese were given the work. The condition was that they would complete the work in 18 months. This term expired in last September. Thereafter, time was extended up to January 06 of this year. They have again applied for extension of time.
ECO-FRIENDLY LEATHER INDUSTRY: During 2016-17 fiscal year, export earnings from this sector stood at Tk 99.74 billion which was 1.15 per cent higher than the target. Leather products are just behind garments in terms of export earnings. Bangladesh's leather is of high quality. Demand for our leather products is increasing abroad. Their demand is too rising locally. Products based on raw hides are making good progress in the domestic market. Sandals, shoes, bags, belts, purses, etc., are being exported.
The government is expected to announce a roadmap for overall development of leather industry. It is hoped that an eco-friendly leather industry will be developed in Savar.
Meanwhile, the Buriganga River has got some relief after shifting of the tanneries to Savar but the river Dhaleswari in Savar is now suffering from pollution, as it was the case earlier in Hazaribagh.
But, local people in Savar complain that polluted water of the Savar tannery estate is flowing to the Dhaleswari River. This water was already polluted by garment factories in the upstream. Fishery is being affected.
The writer is an economist and columnist.
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