Rawhide traders worried over price decline

The price of rawhide is now lower compared to that two to three months ago for which the traders of Savar's Harindhara bazar, one of the country's hubs for raw leather, are worried over what lied in wait for them in upcoming Eid-ul-Azha.

Traders said at present cowhide was being sold at Tk 35 per square feet, goat hide at Tk 20 to Tk 25 per piece and skins of castrated goats at Tk 40 to Tk 45 per piece.

However, two to three months ago, cowhide was being sold at Tk 40 to Tk 45 per square feet whereas prices of the hides of goats alongside that of castrated ones were the same.

As for the reasons for the fall in prices, traders cited that the Russia-Ukraine war has had an impact on the leather market. Transportation and labour costs have increased with hikes in salt prices. Besides, prices of chemicals used in processing leather have increased, they said.

Zahurul Islam, owner of Sirajganj Traders at the market, said the price at which rawhide was sold last season seems to be prevailing this time around. Rawhide is unlikely to be sold at a price higher than that, he said.

"Last season, however, the price of rawhide was not good…Many tannery owners have not yet paid for last season's rawhides. It's a burden for businesspeople," Islam said.

Traders said another reason behind the fall in rawhide prices was that the government allowing certain companies to export "wet blue".

Wet blue leather refers to chrome-tanned leather, which is neither dried, dyed nor finished. It has to undergo another processing to be converted to usable hides for manufacturing goods such as shoes and bags or for export.

Khawaja Moinuddin, manager of Nurnabi Traders at the market, said at present the supply of rawhide was also slightly less compared to what was in previous years.

"It is difficult to say right now how the Eid market will prevail. Once the government fixes the price, we will decide on how much rawhide we will buy this time," he said.

"It all depends on the situation in the days ahead," Moinuddin said.

Yaqub Ali, proprietor of Bismillah Traders at the market, said a 60-kilogramme sack of salt, which was priced at Tk 550 three months ago, was now being sold at Tk 900.

The price of chemicals has doubled. The cost of transportation has increased by 60 per cent in the last six to seven months, he said.

Meanwhile in order to fix fair prices of rawhide before Eid, the Ministry of Commerce has started holding negotiations with the three associations of leather traders.

They are Bangladesh Tanners Association, Bangladesh Hide and Skin Merchants Association, and Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association.

The commerce ministry is also scheduled to announce the prices at its office in Dhaka today.

Last year, the price of salted cowhide in Dhaka was fixed at Tk 40 to Tk 45 per square feet and Tk 33 to Tk 37 outside Dhaka. Apart from this, hides of castrated goats was fixed at Tk 15 to Tk 17 per square feet.

Leather is not sold at the price fixed by the government in the market but at a lower price, said Zahurul Islam, owner of Sirajganj Traders.

Savar's Harindhara bazar, established in 2019, is home to more than 70 shops buying and selling rawhide of cows, buffaloes and goats.

Mohammad Abul Bashar, president of a rawhide traders' co-operative society at Harindhara bazar, said the traders have plans to buy a lot of hides this Eid.

They will get good prices if the government is strict in stopping the smuggling of rawhide, he said.

He said at least 10 lakh pieces of rawhides are bought and sold, worth over Tk 400 crore to Tk 500 crore, in this market during the Eid season.

This market has created around 1,000 jobs till date, he added.

Aftab Khan, president of the Bangladesh Hide and Skin Merchants' Association, said the demand for rawhides has increased.

"The price of rawhide, I believe, will be better during the coming Eid-ul-Azha compared to that last year," he said.

According to the Ministry of Fisheries and Livestock, 1.21 crore animals would be sacrificed in the country this year, two lakh more than that last year.

Md Shakawat Ullah, general secretary of Bangladesh Tanners Association, said they have a target of collecting one crore animal rawhides in the Eid-ul-Azha this year.