Claiming that misleading information are being spread over the prices of sacrificial animal rawhide, tanners have said they will start rawhide purchase by next week at the rates fixed by the government, reports UNB.
They also said the tannery owners will not take the responsibility, if seasonal traders do not purchase rawhides at the government-fixed rates.
"Some media news claimed that the rawhide prices hit the lowest in 30 years. This is not true...the tannery owners will purchase the salt-dusted rawhides at the fixed prices," Bangladesh Tanners Association (BTA) Chairman Shaheen Ahmed said at a press conference in the city on Saturday.
He also said the tanners will not take the responsibility for the seasonal rawhide traders who purchased those at higher prices.
"We'll only purchase the salt-dusted and properly-maintained rawhides within a week."
The BTA chairman, however, warned the seasonal traders saying that those who are not mixing salt with the rawhides properly will not get the proper prices.
Noting that the leather industry is passing through a critical time, Mr Ahmed said many tanneries at Savar Tannery Estate are yet to go into full production after the relocation of their units from the capital's Hazaribagh area.
"Though 113 tanneries, out of 155, have gone into production, and only 40 tanneries have so far been able to go into full production," he added.
BTA General Secretary Shakhawat Ullah said they will start purchasing rawhides from the seasonal traders on Saturday next (September 1), and complete the procurement within next 40-45 days following the fixed rates.
"The tannery owners have nothing to do here, if any seasonal trader purchases rawhides at lower or higher prices. But, we'll follow the fixed rates," he added.
Talking to UNB, Chairman of Finimax Tannery Mazakat Harun Manik said they will purchase rawhides at the government-fixed rates.
"It's very difficult to ensure the fair prices of rawhides at the local level, as many seasonal traders are engaged in the business and they are purchasing rawhides defying the fixed rates."
Mazakat Harun, also senior vice chairman of BTA, said there is no possibility of smuggling rawhides out of the country this year.
"The Border Guard Bangladesh (BGB) and other law-enforcement agencies couldn't seize any rawhide during the last few years, which is an evidence that rawhide is not smuggled out of the country now."
Mentioning that the country's tanneries collect 60 percent of their annual rawhides during Eid-ul-Azha, he said they projected that the tannery owners could procure rawhides of 8.0-8.5 million sacrificial animals, including 5.0 million of cows, this year.
On August 9, the government fixed the prices of sacrificial animal rawhides, reducing those from the rates of the previous year.
The government fixed raw cowhide prices at Tk 40-45 per square foot (sft) for the capital, while at Tk 35-40 for outside Dhaka during this Eid-ul-Azha, down from Tk 50-55 and Tk 40-45 respectively than last year's.
Besides, the prices of goatskins were fixed at Tk 18-20 per sft for all over the country, while that of she-goat at Tk 13-15.
The tannery owners claim that rawhide prices have declined by US$ 20-25 cent per sft in the international market.
FE Report adds: The BTA officials said the tanners will purchase rawhides from seasonal and small traders in order to save them from incurring financial loss.
The seasonal traders said they incurred substantial financial loss this year, as they were offered lower prices for hides by the wholesalers.
They further said they had to purchase a single cowhide at prices ranging between Tk 700 and Tk 800, which they had to sell to the wholesalers at prices between Tk 500 and Tk 700.
But the wholesalers and tanners said the prices of rawhides dropped drastically due to the escalating US-China trade war.
Besides, shifting of tanneries from Hazaribag of the capital to the Savar Tannery Estate made many local and foreign buyers reluctant to purchase rawhides.
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