Even 20 days after Eid-ul-Azha, a large volume of rawhide and skins still remain unsold at Posta, the country's largest rawhide market, as tanners are reluctant to purchase them due to financial crisis.
Rawhide traders also alleged that the tanners are buying rawhide and skins of sacrificial animals from other parts of the country, but they are not coming to Posta to avoid payment of a huge sum of outstanding money.
Many traders at Posta said they have not yet sold a single piece of rawhide.
The price of cowhide (salted/non-salted) has been fixed at Tk 50-55 per square feet (sq ft) in Dhaka and Tk 40-45 per sq ft outside the capital during this Eid-ul-Azha.
Goatskin (salted/salt-free) will sell at Tk 20-22 per sq ft across the country while she-goat's skin at Tk 15-17 per sq ft.
Md Khorshed Alam, proprietor of Hazi Yasin Arat, told the FE that he could not sell a single piece of rawhide till Friday.
"It has never happened. Tanners usually start purchasing rawhide from the second week after Eid-ul-Azha," he said.
Mr Alam said he did not get even 10 per cent of his dues from tanners. "I cannot buy or sell rawhide due to cash crunch," he added.
Mahbub and Brothers also could not sell a single piece of rawhide till Friday, but hoped to start selling of rawhide on Sunday.
Md Aftab, proprietor of Mahbub and Brothers, a leading wholesale trader of rawhide and skins, said sales have not yet started at Posta. "It is unusual."
He, however, expressed the hope that sales would start on Sunday. Some of his customers promised to come on the day.
He bought cowhides ranging from Tk 700 to Tk 1,500 per piece.
Bangladesh Hide and Skin Merchants Association (BHSMA) Secretary General Tipu Sultan said tanners owe Tk 6 billion-Tk 7 billion to rawhide traders at Posta.
"A huge amount of outstanding money was accumulated in last three years. Tanners are not paying even 10 per cent of dues," he said.
Despite alleged smuggling, he said, a large quantity of rawhide and skins of sacrificial animals arrived in the market.
Admitting about reluctance, Bangladesh Tanners Association Chairman Shaheen Ahmed said tanners have not got enough fund to purchase rawhide and skins.
"This is an age-old business relation with Posta traders. It always happens. A portion of money remains due each year," he said.
The government should provide loan to the tanners immediately to bail out the leather sector from dull business, he added.
Mr Ahmed said all tanneries should go into production at the newly constructed leather estate in Savar.
He said only 20 of the tanneries came into operation while the majority of tanneries could not yet start operation for lack of gas connection and incomplete factory structures.
However, he said Posta market contributes 15 to 20 per cent of total rawhide during Eid-ul-Azha.
Many tanners collect rawhide on their own sources from elsewhere in the country.
The procurement prices of per square feet rawhide of sacrificial animals (salted or non-slated) were same like the prices of last year as the country's leather industry is going through tough time, Commerce Minister Tofail Ahmed said after fixation of rawhide prices before Eid-ul-Azha.
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