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'Fix rawhide prices' based on five-six months' data

FE REPORT | July 16, 2020 00:00:00

Finished leather and leather goods exporters have suggested fixing the prices of rawhide of sacrificial animals after analysing the last five-six months' leather export data.

It would be reasonable to determine the prices of rawhide and skins based on the results obtained from the analysis, industry insiders said.

Commerce ministry is now taking preparations for fixing the prices ahead of Eid-ul-Adha like the previous years, they added.

The Bangladesh Finished Leather, Leather Goods and Footwear Exporters' Association (BFLLFEA) recently submitted a proposal to the ministry for considering the issue.

Generally, the rawhide of sacrificial animals reaches tanneries after changing three or four hands.

After that, the raw hides are exported by maintaining different proper process.

So, the volume and prices of exported leather and leather goods is the main criteria for fixing the prices of rawhide, according to the proposal letter.

The Export Promotion Bureau (EPB) preserves the export data of leather and leather goods items, added the letter.

When contacted, BFLLFEA chairman Mohiuddin Ahmed Mahin said, "We need to think some standard/criteria in the level of purchasing of raw hide."

Maximum and minimum quantity and prices of our exported leather and leather goods from January to June last should be considered before fixing the prices of such hide.

"If we analyse minimum and maximum quantity and minimum and maximum prices of last five-six months' export statistics, we'll get an idea to fix per-square feet rawhide prices," he explained.

"Besides, Banks investment, workers salary, staff salary, chemical prices and all other relevant matters cost should also be considered during fixing the prices of rawhide of sacrificial animals."

In the wake of the COVID-19 pandemic, Mr Mahin said, the global economy has been witnessing a hard time.

The local leather sector has been suffering due to the spread of coronavirus in addition to the global economic situation in recent years, he added.

"We couldn't complete the effluent treatment plant and other activities at Savar Tannery Estate within the last three/four years."

"For this," he said, "we have to export our leather goods to the non-compliance customers. We have also lost the Europium Union (EU) market."

"To export leather goods to the EU market, we have to enlist with the Leather Working Group," he mentioned.

"Currently, we are now exporting our leathers goods to china market at lower/less value."

According to an exporter, leather export growth is not increased for the last couple of months. The export earnings trend by the sector was downward.

In the last fiscal year (FY), Bangladesh fetched $797.6 million from leather and leather goods exports, according to the EPB data.

It was $1019.78 million in FY 2018-19 and $1085.51 million in FY 2017-18.


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