Tanners raise prices of raw hides, skin by 50pc ahead of Eid

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FE Report
The country's tanners have raised prices of raw hides and skin by 50 per ahead of the Eid-ul-Azha, beginning on November 17, after the domestic leather sector was hit by anthrax scare over the past several months.
International prices of raw hides also grew over the past few months, tanners said Monday.
During the three-day Eid-ul-Azha tanners get around 50 per cent raw hides of total annual collection.
"We've raised the prices of raw hides and skin for this year due to higher export and local consumption," Md. Shaheen Ahmed, chairman of Bangladesh Tanners Association (BTA) told the FE.
The tanners at a meeting Sunday fixed raw hide prices at Tk 60 per square foot for the city and Tk 50 for outside the city. It was Tk 40 and Tk 30 per square foot last year.
The tanners disclosed this formally at local hotel Monday.
The tanners said the value of raw hides of goat has been fixed at Tk 30 per square foot in Dhaka and Tk 25 for outside the capital city.
Mr Shaheen, who owns Kohinoor Tanneries Ltd. said the prices fixed by the association are applicable only to procure raw hides at field level across the country.
The tanners said the country's leather export is also rising in 2010-11.
Local consumption for making leather products such as footwear, bag and purse makers accounts for 120 million square feet out of nearly 350 million annually.
Tanners said prices of finished and semi-finished leather increased in the international market in recent times after recovery from financial crisis.
"We've considered every element while fixing the rates," Mr Shaheen added.
Shoe and bag makers said they have been facing shortage of leather in the country following the anthrax scare over the past few months.
The shortage of leather has also led to price hike of the item in the local market. Currently, the finer quality raw hide ranges between Tk 90-Tk 95 a square foot against Tk 80-Tk85.
"Procurement of raw hide dropped significantly after anthrax scare," Md Saiful Islam, managing director of Picard Bangladesh, a leading bag and purse maker, told the FE.
Local tanners procured more than 2.9 million pieces of cow hides and 4.5 million pieces of goat skin during the Eid-ul-Azha in 2009.
Around 170 tanners of the country exported semi-finished and finished leather worth $226 million in fiscal 2009-10 while shoe manufacturers shipped footwear worth $ 204.09 million.