Foreign buyers reluctant to procure hides from country
Tuesday, 16 December 2008
Jasim Uddin Haroon
International buyers are showing reluctance to procure hides from Bangladesh on the plea of ongoing financial meltdown in their countries, local tanners told the FE Monday.
Local tanners said most of the buyers who earlier used to visit Bangladesh during Eid-ul-Azha, refrained from visiting the country this time.
"There is no buyer in Dhaka this time. Rather we are searching them through electronic mails and other means," said Rezaul Karim Ansari, president of Bangladesh Finished Leather and Leather Goods Exporters Association.
He also said: "Buyers are asking us to 'wait and see' following the financial crisis in rich nations."
Local tanners, however, said they have been collecting raw hides after the Eid-ul-Azha hoping the market will turn around sometime.
Local tanners expressed the hope that they would mobilise at least 200 million square feet of hides this time.
"There will be no 'abandoned raw hide and skin' this year. All will be collected," said Md Harun Chowdhury, president of Bangladesh Tanners Association (BTA).
He said: "Some local tanners are taking time to collect hides either due to financial crisis or due to price bargaining with the seasonal raw hide businessmen."
Seasonal businessmen have suffered substantial losses in the trade of raw hides and skin collected during the Eid-ul-Azha festival this year as they have been given lower-than-expected prices by tanners this year.
Around 60 per cent of total raw hides and skin during the occasion are supplied by the non-traditional businessmen.
The country's two organisations -- BTA and Bangladesh Finished Leather, Leather Goods Exporters Association (BFLLGEA) -- fixed prices of raw hides and skin at Tk 30-35 per square foot, which were around Tk 60-70 during the last Eid.
Tanners had to lower the price almost by 50 per cent from last year's level due to sharp fall in prices and demand of finished leather in the international market as a result of the global economic crisis.
Local tanners claimed that around 30 per cent of around 200 million square feet of leather remained unsold following the global economic crisis.
Commerce ministry data showed that export of leather dropped by 19.61 per cent from its target, set for the July-September period this year.
International buyers are showing reluctance to procure hides from Bangladesh on the plea of ongoing financial meltdown in their countries, local tanners told the FE Monday.
Local tanners said most of the buyers who earlier used to visit Bangladesh during Eid-ul-Azha, refrained from visiting the country this time.
"There is no buyer in Dhaka this time. Rather we are searching them through electronic mails and other means," said Rezaul Karim Ansari, president of Bangladesh Finished Leather and Leather Goods Exporters Association.
He also said: "Buyers are asking us to 'wait and see' following the financial crisis in rich nations."
Local tanners, however, said they have been collecting raw hides after the Eid-ul-Azha hoping the market will turn around sometime.
Local tanners expressed the hope that they would mobilise at least 200 million square feet of hides this time.
"There will be no 'abandoned raw hide and skin' this year. All will be collected," said Md Harun Chowdhury, president of Bangladesh Tanners Association (BTA).
He said: "Some local tanners are taking time to collect hides either due to financial crisis or due to price bargaining with the seasonal raw hide businessmen."
Seasonal businessmen have suffered substantial losses in the trade of raw hides and skin collected during the Eid-ul-Azha festival this year as they have been given lower-than-expected prices by tanners this year.
Around 60 per cent of total raw hides and skin during the occasion are supplied by the non-traditional businessmen.
The country's two organisations -- BTA and Bangladesh Finished Leather, Leather Goods Exporters Association (BFLLGEA) -- fixed prices of raw hides and skin at Tk 30-35 per square foot, which were around Tk 60-70 during the last Eid.
Tanners had to lower the price almost by 50 per cent from last year's level due to sharp fall in prices and demand of finished leather in the international market as a result of the global economic crisis.
Local tanners claimed that around 30 per cent of around 200 million square feet of leather remained unsold following the global economic crisis.
Commerce ministry data showed that export of leather dropped by 19.61 per cent from its target, set for the July-September period this year.