Rawhide preservation, smuggling a headache this Eid
This Eid-ul-Azha, more than 30 percent of the rawhide is likely to go to waste as a large number of tanneries are not interested in purchasing the skin of the sacrificial animals due to them being non-operational still following relocation to Savar.
The industries ministry recently claimed that 67 of the 155 tanneries started full-fledged operation at the newly constructed leather estate in Savar, but the tanners said only 20 of them are up and running now.
The majority of the tanneries could not start operations yet because of a lack of gas connection and incomplete factory structures.
But Mohiuddin Ahmed Mahin, president of the Bangladesh Finished Leather, Leathergoods and Footwear Exporters Associa-tion, downplayed the matter. Rather, he is concerned about the spiralling price of salt, critical to preserve rawhide.
For instance, a 50 kilogram of salt sack that sold for Tk 800-900 during Eid-ul-Azha last year is now selling for Tk 1,300-1,500. The prices are expected to rise further in the coming days.
“If the salt is applied within six or eight hours of skinning, the rawhides can be preserved for up to two months without tanning. So, the non-operation of a good number of tanneries might not be a concern.”
In a medium-sized rawhide, eight kgs of salt is needed and on the big ones 12 kgs, according to Mahin.
Some traders can scrimp on the usage of salt due to the higher price this year.
Saiful Islam, president of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, raised concerns about the quality of the rawhide that would become available this time.
“Typically, we get good-quality leather from the northern region of the country every year, but this time the whole area is under water.”
Besides, the quality of the rawhides will invariably deteriorate given the poor conditions of the roads and highways across the country, meaning longer transit time.
Another reason why the quality of the rawhides would not be as good as in previous years is that the health of the sacrificial animals in the flood-affected areas has deteriorated too, according to Islam.
Incidents of smuggling of rawhides out of Bangladesh to neighbouring India will shoot up this year, he said.
And this year, the demand for rawhide is high in India as many of its provinces have stopped slaughtering of cows, Islam said.
“Many Indian tanners are waiting for leathers of cows and goats that will be harvested during Eid-ul-Azha.”
Besides, the government has fixed the price of the rawhide in line with the international rates this time.
This Eid-ul-Azha, the price of per square foot of cow rawhide has been fixed at Tk 50-55 in Dhaka and Tk 40-45 outside of the capital. For he-goat rawhide, the rates would be Tk 40-45 and Tk 15-17 for she-goat across the country.
Shahin Ahmed, chairman of the Bangladesh Tanners Association, echoed Islam's smuggling concerns, while urging the government to tighten the security along the Indian border for at least one month instead of four to five days as seen every year.
“At least 15 percent of the rawhides are smuggled out to India every year during Eid-ul-Azha. This year the percentage will rise.”
Ahmed said a section of unscrupulous traders increase the prices of salt every year ahead of Eid-ul-Azha as they know this item is very much needed for preserving the rawhides.
Leather and leather goods is the second highest export earning sector after apparel. It raked in $1.23 billion last fiscal year, up 6.29 percent year-on-year, according to data from the Export Promotion Bureau.
This year, 44.57 lakh cows and buffaloes and 71 lakh goats and sheep are expected to be sacrificed around the country, which is lower than in previous years, according to data from the commerce ministry.