The owners of tanneries have agreed to pay dues to rawhide traders gradually following a consensus reached at a meeting mediated by the FBCCI.
The unpaid bills will be divided in three phases – those from 1990 to 2010, from 2010 to 2015, and from 2015 to now, Bangladesh Tanners Association President Shaheen Ahmed told bdnews24.com after the meeting in Dhaka on Thursday.
The tanners will pay the dues of the latest phase first up, according to Shaheen.
The rawhide merchants will submit a list of the dues from 2015 until now within next Sunday, Bangladesh Hide and Skin Merchants Association General Secretary Tipu Sultan said.
The first list is estimated to include Tk 700 to 800 million in dues, according to the merchants. Rawhide wholesalers from Old Dhaka’s Posta, Chattogram and the northern districts attended the meeting.
FBCCI President Sheikh Fazle Fahim said the repayment will be a continuous process in three slabs.
They will hold the next meeting on Aug 31, he said.
A day after the hide merchants announced a halt to sales to tanners citing dues, the commerce ministry on Sunday called a meeting of the stakeholders of the leather industry to find a way out of the crisis.
The merchants had said after the meeting that they would resume sales to tanners and the FBCCI would act as a mediator amid the standoff between the two parties following a crisis after Eid-ul-Azha.
Seasonal traders dropped their stock on the streets to rot when the wholesalers started offering meagre prices for hides or stopped purchasing it entirely after the Eid, when half the annual demand is met through sacrifice of cattle by Muslims.