The prices of raw hides and skins are comparatively higher this year than the prices of those items were in the last couple of years in Dhaka while in Chittagong, the prices are low this year although the collection is high, market sources said. The prices shot up mainly due to strong demand of the finished leather and leather items in the global market, the source pointed out. The traders at Posta, the main wholesale raw leather market in the capital told this correspondent that they bought hide and skin of the sacrificial animals from the seasonal traders at much higher prices than the fixed rate.
The leaders of three associations involved with leather trading jointly had fixed the prices of raw hide and skin to be collected during this years Eid-ul- Azha festival. But the prices went up by Tk 15-20 per square feet on an average.
The raw hides are being traded at Tk 100-110 per square feet against the fixed rate of Tk 85-90 for the raw hide collected from the capital and adjacent areas.
According to sources, a standard size raw leather are being traded at Tk 3,500-4,000 while the prices of small size cow hide was Tk 2,000-2,200. The prices of such raw leathers were Tk 1,400-1,900 last year.
In addition, prices of per square feet processed goat skin with salt were fixed at Tk 50-55 across the country and Tk 40-45 of per square feet of both buffalo hide and she-goat skin.
The wholesalers of raw leather told The Independent that this year, they are paying around Tk 100 for per square foot processed cow hide with salt.
Both the tanners and the wholesalers claimed that the seasonal traders, who have collected raw leather of the sacrificial animals during the Eid-ul-Azha from house to house, are asking higher prices.
They are bargaining with the seasonal traders of raw hide and also showing reluctant to purchase the collected raw leather at high price than the set price.
The tanners also claimed that some seasonal traders also created syndicates among themselves and are trying to force the tanners to purchase the collected raw hides and skins of the sacrificial animals at higher prices.
BTA president Md Shaheen Ahamed told the independent that the seasonal traders were demanding Tk 3,000 for a cow hide of 20 to 22 square feet and Tk 4,000-5,000 for a raw hide of 40 to 60 square feet.
Although, we have fixed prices of raw hides this year before the Eid-ul-Azha, the seasonal and the small traders had collected raw hide at higher prices from different areas, he added.
As a result, the seasonal traders may be suffered losses, the BTA president said and thus urged the wholesalers and the tanners of raw leather to procure the collected cow hides from the seasonal traders paying Tk 5-10 more for per square foot cow hide than the set price.
“We have taken bank loans around Tk 450 crore from four state-owned commercial banks,” Shaheen said.
The tanners have to procure the collected raw leather of sacrificial animals comparatively at premier prices as they have to pay back the bank loans by running their businesses, he added.
Considering the growing demand for finished leather and leather goods in the global market, Ali Hossain, chairman of Bangladesh Hide and Skin Merchants Association, expected that the price of per square foot of cow hide will cross Tk 100 this year. He also said most of the raw leather of sacrificial animals in the capital and its adjacent areas has been collected.
The collected raw hides and skins of outside Dhaka will reach ‘Posta’ after a week, he said and added that tannery agents and wholesalers will start procurement of the collected raw leather from ‘haats’ at various places across the country outside Dhaka from Saturday (today).
Tanners this year targeted collecting around 6.5 million pieces of raw hide and skin during Eid-ul-Azha, which is about 20 per cent more from that of last year’s procurement.
Our Chittagong correspondent Nazimuddin Shyamol reports that leather traders gathered more animal hides this Eid-Ul Azha.
Seasonal and permanent leather traders have collected more than five lakh pieces of cattle hides at low prices after Eid-ul-Azha in the current year.
A large number of sacrificial animals reached the cattle markets of Chittagong well before October 15. This brought down the prices of those animals to the satisfaction of the common people. It is reported that around six to seven lakh animals were sacrificed during Eid Ul Azha this year. The number was four lakh in the last year.
According to sources, the supply of sacrificial cattle hides has increased at least 30 per cent in the current year. They said tanneries had collected a total of three lakh pieces sacrificial animal hides in 2010 and more than two lakh pieces in 2009.
Unlike the previous year, seasonal leather traders are getting fixed prices for animal hides from tannery owners. The authorities have fixed the rate of cow and bull hides at Tk. 75-80 per sq ft, buffalo hides at Tk. 40-45 per sq ft, goat hides at Tk. 40-45 per sq ft this year.
Mohammed Moslem Uddin, president of Chittagong Leather Arothdar Samity, told The Independent that there has been a significant increase in the amount of collection of animal hides after this Eid-ul-Azha. “Our collection of sacrificial cattle leather has exceeded our target in 2010,” he added.
Khorshed Alam, general secretary of Chittagong Lather Arothdar Samity, said: “We collected animal hides at Tk. 80-120 per sq ft during the previous years. But we have collected leather at Tk. 65-75 per sq ft this year. Tannery owners have fixed the rate in the current year. We’re tensed about the rate as the preservation cost would be added to the cost of leather, which may cross the fixed rate. We’ve invested advance money for collecting leather during Eid-ul- Azha. Our investments are secure as we do not know what price the tannery owners would give us.”
Abu Ahamed, adviser to the Bangladesh Finished Lather Goods Exporters Association, said: “We’ve fixed the rate of leather as the international market of leather goods has become rather dull.”
Earlier, there were 13 tanneries in the port city. Of them, only two are still in operation as the rest have stopped production due to a palpable supply dearth of animal hides.
Some leather traders alleged that the government does not cooperate with genuine leather traders or tannery owners in Chittagong. “So, the leather or tannery industry is facing crisis. Maximum tanneries in Chittagong have been closed down,” they added.
-With The Independent input
