Tanners, traders agree to settle row over hide prices
Tuesday, 23 November 2010
Jubair Hasan
Tanners and traders have agreed to settle the row over prices of raw hides following a government intervention on the assumption that a lingering dispute will lead to smuggling of the vital export product.
Both the group reached the agreement Monday at an emergency meeting where commerce secretary Golam Hossain asked them to settle the issue as early as possible.
"Both the sides assured the commerce secretary of resolving the crisis by Wednesday after fixing a reasonable rate in line with the international market price," said Delwar Hossain, general secretary of Bangladesh Hide and Skin Merchant Association (BHSMA), who represents the traders during the meeting.
He said the traders have asked the tanners to withdraw their recent decision to suspend buying of the hides as the situation might lead to smuggling as the cost for preserving the raw hide is going up in every passing day.
Chairman of Bangladesh Tanners Association Shaheen Ahmed said they will hold talks with traders Tuesday to reach a settlement on the price issue.
"The rate charged by the traders is not possible to meet. The higher price should be cut down to an affordable level," he said.
He said commerce secretary assured them of taking necessary measures to stop rawhide smuggling across the border with the help of the home ministry.
The problem arose last Thursday after traders purchased raw hides by paying Tk 20-30 extra over the price fixed for per square foot at Tk 55-60 for cows for Dhaka and Tk 45-50 for outside Dhaka.
According to the tanners, international price of exportable finished leather is varying between $ 1.05 and $ 2.10 per square foot.
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 this occasion 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.
Tanners and traders have agreed to settle the row over prices of raw hides following a government intervention on the assumption that a lingering dispute will lead to smuggling of the vital export product.
Both the group reached the agreement Monday at an emergency meeting where commerce secretary Golam Hossain asked them to settle the issue as early as possible.
"Both the sides assured the commerce secretary of resolving the crisis by Wednesday after fixing a reasonable rate in line with the international market price," said Delwar Hossain, general secretary of Bangladesh Hide and Skin Merchant Association (BHSMA), who represents the traders during the meeting.
He said the traders have asked the tanners to withdraw their recent decision to suspend buying of the hides as the situation might lead to smuggling as the cost for preserving the raw hide is going up in every passing day.
Chairman of Bangladesh Tanners Association Shaheen Ahmed said they will hold talks with traders Tuesday to reach a settlement on the price issue.
"The rate charged by the traders is not possible to meet. The higher price should be cut down to an affordable level," he said.
He said commerce secretary assured them of taking necessary measures to stop rawhide smuggling across the border with the help of the home ministry.
The problem arose last Thursday after traders purchased raw hides by paying Tk 20-30 extra over the price fixed for per square foot at Tk 55-60 for cows for Dhaka and Tk 45-50 for outside Dhaka.
According to the tanners, international price of exportable finished leather is varying between $ 1.05 and $ 2.10 per square foot.
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 this occasion 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.