Ctg rawhide traders eye loss recovery

Although low price of rawhide in Chittagong is disappointing those who sacrificed animals, it brings a sigh of relief to the traders as they are eyeing to recover the losses they reportedly incurred during the past two seasons.

The traders say a downward trend in the demand of leather product in the international market put the tanners industry in tatter, which was caused, among others, by some domestic reasons.

Muklesur Rahman, managing director (ops and sales) of Riff Leather Ltd, told The Daily Star that this time the rawhide price is reasonable and they want to take it as a chance to recoup the losses.

International leather market depends on the demand of the US. It sees a downward trend when it is less cold in the countries where long spell of cold wave increases the demand of leather-based products, he added.

Hoarders of rawhide claimed that they spent Tk 5 to Tk 10 more for per square feet of rawhide than the price fixed by the tanners as the hike in salt price during the sacrificial event this year.

Muslem Uddin, former president of Chittagong City Corporation Rawhide Hoarders Association, said they every year plan to buy five lakhs of rawhides within two days of Eid-ul-Azha.

But this year, they were able to collect three lakh in the last two days as the seasonal traders were assumed to preserve the skin for high price.

Muslem said they were expecting the rest of the skins to be supplied in the week ahead.

“Seasonal buyers of rawhide created a syndicate and bought cattle hides at a very low price but they supplied it to us for twice the price they bought from those who sacrificed animals,” he added.

“They got each rawhide at Tk 300 to Tk 400 on an average and we bought per cattle hide at Tk 600 to Tk 1,200,” Muslem said.

He also expressed his frustration over the price of salt as it soared from Tk 950 to Tk 1,250 per sack (74 kg).

It took extra money to preserve per cattle hide, added Hazi Md Sekandar, president Chittagong City Corporation Rawhide Association.

“We may run up losses if the tanners association remains determined on the fixed price,” he added.

The government fixed Tk 45 to Tk 50 as the price of cowhide per square feet while the price of goat skin was determined between Tk 20 and Tk 50.