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Power outage, gas shortage damage rawhides and skins

Shah Alam Nur | Thursday, 16 October 2014



Frequent power outages, shortage of gas supply and hot weather are taking its toll on rawhides and skins of sacrificial animals, industry insiders said.
According to them, around 15 per cent of the rawhides have already been affected due to inadequate supply of power and gas.
They also fear that if the present problem persists, the extent of damage could reach 20-25 per cent due to load-shedding for up to 6-8 hours while no gas is available.
Due to hot weather and energy shortage, smooth processing of rawhides is being hampered as within 12-14 hours, the processing has to be completed. Otherwise, raw hides will be completely damaged.
According to insiders, around 15 million pieces of hides and skins of sacrificial animals including cows, buffaloes, goats and sheep worth more than Tk 150 billion were collected by retail buyers during the Eid-ul Azha.
"Due to the damage this year, the leather industry's direct loss will be around 15 per cent of rawhides and skins worth Tk 10 billion", Belal Hossain, former chairman of the Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLGFEA) told the FE.
He said uninterrupted supply of electricity and gas is needed for processing rawhides and skins as these are perishable and cannot be stored for long without processing.
He said tanneries are being supplied with very limited electricity and gas as power suspension remains for 6-7 hours there. This is taking its toll on rawhide and skin processing.
He demanded uninterrupted gas and power supply to the tanneries.
He said during the Eid-ul Azha, tanneries collected more than 80 per cent raw hides and skins which are the basic raw materials for leather industry to make leather garments, bags, footwear, ballets and gloves.
Tipu Sultan, general secretary of the Bangladesh Hide and Skin Merchants Association (BHSMA), said Eid-ul-Azha is the peak season for leather industry but the sector is facing great problems in processing rawhides and skins due to power and energy shortage.
Shaheen Ahmed, chairman of the Bangladesh Tanners Association (BTA) said one worker can process more than 300 rawhides a day but for power shortage, he can not go beyond 200.
He said moreover, unskilled butchers damage more than 5-7 per cent of rawhides and skins every year.
He said this year about 1.5 million cattle were sacrificed across the country. Almost 0.2 million rawhides are damaged just because of the incompetence of butchers.
He said unskilled butchers this year have caused damage to the tune of Tk 2 billion. Each square foot of rawhide is priced at Tk 65-Tk 70.
A leader of the BFLLGFEA said, at the same time more than 10 per cent rawhides and skins have been smuggled to the neighbouring country through border areas.
He said there are more than 1,000 people involved in rawhide smuggling to India.
The Indian agents are aggressively buying rawhides from the local market. They have been appointed before Eid to pay advance money.

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