Traders eye bigger export earning, urge govt to check smuggling
The prices of rawhide following Eid-ul-Azha this year posted more than 30 per cent higher that last year as the demand for the item increased in the international market as well as traders set the minimum price of hide of the sacrificial animals in the face of a threat from the commerce ministry. Traders said that not only prices but also supply of rawhide increased more than 40 per cent this year.
They said that a huge number of animals were sacrificed this year across the country and the leather sector would achieve a significant growth through adding value to rawhide. But they expected the government to resist smuggling.
Traders alleged that the representatives of some Indian traders were buying rawhide with high prices in Jessore and Sona Masjid area in Chapainawabganj.
‘Both the supply and prices of rawhide his year were higher than the last year and we expect that it would be very easy to achieve the target of 65 lakh cow hide,’ Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association president Belal Hossain told New Age on Friday.
He said that the prices and demands of leather and leather products have increased on the international market and businessmen in the sector were hopeful over a higher supply of rawhide.
The tanners at Dhaka have already collected about 75 per cent of rawhide from Dhaka and adjoining areas and the hides from other areas of the country would start to come to Dhaka within two or three days, Belal said.
‘We are hopeful this year about the supply and good international market price of hide but there are two major concern — one is political turmoil of the election year and another is relocation of tanneries which will start by the end of this year,’ he said.
Bangladesh Tanners Association president Shaheen Ahmed said that the leather sector has already set a price for rawhide and tanners will not buy the item out of the set rate.
The increased number of rawhide would raise export earning of the country, but the government has to check smuggling of rawhide to the neighboring country, he said.
Shaheen said that usually the supply of rawhide increases by 15-20 per cent in the election year and this year the supply of the item may increase more than 30 per cent.
Not only election year, but also the lower prices of cattle was another reason for the increased number of scarifies this year, he added.
There is a huge risk to smuggle the item to India this year as their currency depreciated more than 15 per cent against the US dollar, he said.
Secretary general of BTA Abdul Hai said that the price of hides posted up to 50 per cent higher this year compared to last year’s value as the price has been set considering the international price.
He said that the price of a high quality cow hide was not bellow Tk 2,000 and as per the size of the hides the highest price mounted to Tk 3,000 a piece.
Alauddin Mukul, general secretary of Razarhat Hide Merchants Association, the second largest hide market in the country, said that both the prices and supply of rawhide increased by 50 per cent this year.
But the small traders would suffer largely if tanners are late to start purchasing hide from outside Dhaka, he said.
Alauddin expressed his fear over the smuggling and said the slow purchasing by tanners might encourage smuggling in the Jessore belt.
-With New Age input
