Traders-tanners row over raw hide price continues

FE Team | Published: November 21, 2010 00:00:00 | Updated: February 01, 2018 00:00:00

Jubair Hasan
Heaps of raw hides remain unsold even after four days of the Eid-ul-Azha in a lingering row between the seasonal traders and tanners over the prices.
The traders are upbeat of getting higher prices for their unsold stocks although the tanners are still reluctant to raise price of the animal hides.
The problem has arisen following distortions in prices fixed by the authorities and the asking rate by the seasonal traders, who have reportedly paid Tk 20-30 extra per square foot over Tk 55-60 fixed for cows in Dhaka and Tk 45-50 for outside Dhaka.
"We're still hopeful that the tanners will accept our prices," Delwar Hossain, general secretary of Bangladesh Hide and Skin Merchant Association (BHSMA), said, adding that the prevailing situation was not a good sign for the sector, which saw a setback in recent time due to Anthrax infection.
He said they will sit on an emergency meeting with the tanners tomorrow (Sunday). "I'm very much hopeful that the meeting will bring something positive to remove the confusion," he said.
The trader said the significant part of the rawhides remain unsold and stockpiled in their warehouses due to the problem.
The rawhide traders feared that they might suffer substantial losses this time unless the tanners changed their tactical stand.
But some tannery owners said they will not pay a single taka extra in procuring raw hides from the traders as the prices were fixed in line with the international market price.
"We've stopped purchasing hides from traders due to much higher prices," Haron Chowdhury, Adviser of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLFEA).
He said three associations, including Bangladesh Tanner Association, made the price rate last week in line with the international market where per square foot of raw hide sales at $ 1.05-2.10. "We can't sustain if we pay higher than that."
Responding to another query, he said the seasonal traders procured the hides at much higher prices. "So we will not take the responsibility," he added.
The tannery owners decided to show a go slow policy in purchasing of rawhides of the sacrificial animals from Thursday to remove manipulation in rawhide trading.
Chairman of Bangladesh Tanners Association Shaheen Ahmed told the FE that the Sunday's meeting was very vital for the industry.
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. During the Eid-ul-Azha tanners get around 50 per cent raw hides of total annual collection.
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.