Seasonal businessmen suffer big losses in raw hides trade

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Shakhawat Hossain
Seasonal businessmen said they have suffered substantial losses in the trade of raw hides and skin collected during the Eid-ul-Azha festival this year as they have been given lower than expected prices by tanners this year, market experts and traders said.
"The losses of the seasonal businessmen will be at least 25 per cent of their investment," claimed a leading businessman in the city's main finished leather hub Suritola.
Around 60 per cent of total raw hides and skin during the occasion are supplied by the non-traditional businessmen, who collect them from door to door, said Arif Ahmed.
"Carelessness and lack of information among the non-traditional businessmen are the main reasons for the substantial losses," he said.
Seasonal businessmen, however, blamed 'unholy alliance' of the tanners and the wholesalers for unexpected fall in prices of raw hides and skin by more than 60 per cent of the last year's price.
Sumon, along with his four friends in the city's Narinda area, invested around Tk 0.5 million. But half of their money has been lost.
Brushing aside allegation of unholy alliance president of the Bangladesh Tanners Association (BTA) Harun Chowdhury said responsibility of such losses should not fall on the tanners and wholesale traders.
"Blame should go to the seasonal businessmen who were ignorant about the market situation," he said.
The country's two organisations -- BTA and Bangladesh Finished Leather, Leather goods and Exporters Association (BFLLGEA) -- fixed prices of raw hides and skin at Tk 30-35 per square foot, which was around Tk 60-70 during the last Eid.
They had to lower the price almost by 50 per cent from last year's level due to sharp fall in prices and demand of finished leather in the international market as a result of the global economic crisis.
"But the non-traditional businessmen were totally ignorant about the market situation before making investment," Harun said.
The international prices of crust and finished leather fell to 90 cents from its earlier prices of US$ 1.50 each square foot following global financial meltdown.
Local tanners claimed that around 30 per cent of around 200 million square feet of leather remained unsold following the global economic crisis.
Commerce ministry data showed that export of leather dropped by 19.61 per cent from its target, set for the July-September period this year.
BTA and BFLLGEA leaders have, however, expressed satisfaction over the collection of raw hides and skin, which will be around 3.0 million pieces this year.
Already 50 per cent of the collection reached the city's raw hide hub Posta while the rest will be coming in the next one month time.
BTA and BFLLGEA leaders said they are expecting positive change in the international finished leather market in the next six months time, thanks to bailout packages being offered by rich countries.
Local tanners procure around 40 per cent of the annual raw hide collection during Eid-ul-Azha.