The outcry over poor prices of salted rawhides has intensified as tanners have started sourcing the basic raw materials of leather goods from Posta in city, traders say.
Like the last season, the wholesalers cited liquidity crunch and continuous price fall in the global market because of the Covid-19 pandemic as the reasons for lower price offered to seasonal traders.
Although the volume of purchase by the tanners has yet to get momentum, merchants expect the pace to accelerate from the next week and it will continue until October.
From the early morning to midnight, seasonal traders brought salted cowhides and goat skins in trucks and vans from various parts of the country to Posta.
But they were found frustrated over the selling rates, which were much lower than what they expected.
Monir Hossain, who carried 20 medium-sized salted cowhides to Posta from Narayanganj, said he failed to recover his costs because of the low price offered by the wholesalers.
"On an average, I incurred a loss of around Tk 200 per rawhide," he said.
Aftab Khan, president of the Bangladesh Hide and Skin Merchant Association, said the price at which raw leather is selling is reasonable.
"We are in cash shortfall as the tanners had not paid our dues from the last few years. That is why, we cannot offer better prices to the seasonal traders," he said.
Mr Khan also informed on a limited scale, tanners have started buying the basic raw materials of leather goods from them.
"We hope the selling will gain momentum from early next week and will continue for three months," he said.
Imam Hossain, owner of ABS Tannery Limited, said they have started sourcing salted rawhides, despite challenges like stock of unsold hides, demand fall in the global market and the pandemic.
"Our people are busy buying rawhides, although we've yet to know how long the sluggishness in the business will persist due to the pandemic," he added.
A tanner, preferring to be unidentified, said some of the wholesalers raised the selling rate, which is higher than the official rate.
"This is not a good sign. All should comply with the government rate, which was set by the stakeholders together," he added.
President of Bangladesh Finished Leather and Footwear Exporters Association Mohiuddin Ahmed Mahin said it was decided in a stakeholders' meeting on Tuesday (August 04) that wholesalers will have to sell rawhides to tanners within the official rates.
"It would be very unfortunate if any wholesaler violates it. We all should follow it for a better business environment," he added.
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