Rawhide traders reversed their decision of halting rawhide sales to tanners and decided to resume sales today.
The decision was made following a meeting with the Commerce Ministry on Sunday, said Delwar Hossain, president of Bangladesh Hide and Skin Merchants Association (BHSMA).
The Commerce Ministry called for the meeting a day after BHSMA had announced a halt on sales of rawhides to tanners citing unpaid dues.
The ministry held discussions with stakeholders of the leather industry to find a way out of the crisis.
Delwar Hossain further said the Federation of Bangladesh Chambers of Commerce and Industries (FBCCI) will act as a mediator between the two parties over dues.
Commerce Secretary M Mofizul Islam presided over the closed-door meeting where media was not allowed.
Among others, Private Industry and Investment Adviser to the Prime Minister Salman F Rahman, Industries Secretary Md Halim and leaders from merchant and tanners’ association were present at the meeting.
At a media briefing later, Industries Minister Nurul Majid Mahmud Humayun said that the leather industry has as much potential as the readymade garments sector, and that the government is adopting a leather policy for the growth of this sector.
“For a sustainable solution to the crisis on rawhide, we had discussions with all stakeholders so that the sector can grow smoothly,” said the minister.
Commerce Secretary M Mofizul Islam said tanners are scheduled to start buying rawhide from Wednesday.
“The government has already taken a policy to export rawhide, and steps will be taken following the decision,” the commerce secretary further said.
The FBCCI has called for a meeting on August 22 to resolve the crisis.
The country’s rawhide business is in disarray this year due to the fall of rawhide prices during Eid-ul-Adha.
Rawhide traders and tanners blame each other for the damage done to rawhides.
Thousands of rawhides were dumped, the highest in a decade, while a large quantity of valuable rawhides rotted across the country.