The government has fixed the prices of rawhides of animals to be sacrificed during the ensuing Eid-ul-Azha at nearly 30 per cent lower than the prices of the last year.
The decision in this regard was taken at a virtual meeting held on Sunday with Commerce Minister Tipu Munshi in the chair.
The decision of steep decline in rawhides prices may create a shockwave in the country’s leather industry considered as a priority sector.
At the meeting, Tipu Mushi urged people to apply salt on animal hides in time before bringing them to Dhaka.
Besides, the authorities concerned will ensure monitoring to prevent the smuggling of rawhides.
This year, tanners would buy per square foot salted cowhide at Tk 35-40 in Dhaka, which was 29 per cent lower than the price of last year while Tk 28-32 outside Dhaka, which was 20 per cent lower than the price of last year. The price of salted goat rawhide has been fixed at Tk 13-15 per square foot across the country with a 27 per cent lower and that of goatskin at Tk 10-12 a square foot, a 22 per cent down from the prices of last year.
Last year, the government had set cowhide price at Tk 45-50 a square foot in Dhaka and Tk 35-40 a square foot for outside of Dhaka. The price of castrated-goatskin was set at Tk 18-20 a square foot and that of goatskin at Tk 13-15 a square foot across the country.
Tipu Munshi said that they set the prices considering the ongoing situation of global business, prices of rawhides on the international market and the current state of the country’s leather sector.
According to Commerce Ministry, ahead of the Eid-ul-Azha, the Commerce Ministry has taken a comprehensive plan to monitor the sale of rawhides of sacrificial animals at fixed rates as well as collection, storage and preservation of the rawhides, and salt supply for rawhides.
The government has taken a number of remedial measures to ensure rawhides fair prices and storage, as well as to thwart vested quarters manipulating the market during the upcoming Eid-ul-Azha.
Last year, there was an unprecedented crisis over animal rawhides. As prices began falling, seasonal traders buried or dumped large quantities of rawhides while large numbers were damaged due to lack of processing.
Earlier, Commerce Minister Tipu Munshi told The Bangladesh Post that "We are trying our best to ensure that everyone gets a fair price. That is why we are talking to banks on banking facilities. They have given letters, so that at least this time, traders are given financial benefits. Even then, if no one can buy rawhides, we will open the door for export to all so that a fair price is ensured.”
“However, if someone wants to store it locally for some time, and then sell it when they get a good price, we will provide him all kinds of facilities,” Munshi added.
In October last year, a high-level task force comprising four ministries and several departments was formed to overcome the crisis of rawhides collection during the Eid-ul Azha and protect the industry.
The government provides loans every year to rawhides traders. Although the tannery owners were allocated Tk 696 crore for the purchase of rawhides during the last Eid-ul-Azha, the tanneries took loans of a total Tk 438 crore.
According to the Bangladesh Bank, the amount of loans disbursed in the leather sector is a little more than Tk 8,000 crore. Of this, more than taka 5,000 crore have turned into default.
