Some 30 per cent of rawhides and skins of sacrificial animals, collected during the Eid-ul-Azha from across the country, has not yet reached the tanners in the capital due to frequent spells of strike and blockade since the festival in October.
"Usually it takes maximum one and half months to collect all the rawhides and skins after the Eid festival. But this year already two months have passed after the Eid, and 30 per cent of hides cannot be collected due to strikes and blockades," Bangladesh Tanners Association (BTA) President Shahin Ahmed told The Financial Express (FE) Friday.
He said primary salted rawhides last two to two and half months. If these are not collected from field level within this time, they get damaged.
Rawhide prices hit a record high of Tk 125 per square feet this year in the wholesale market in the capital and other parts of the country.
Before the Eid, Bangladesh Finished Leather, Leather goods and Footwear Exporters' Association (BFLLFEA), Bangladesh Tanners Association (BTA) and Bangladesh Hide and Skin Merchants Association (BHSMA) jointly announced a price list for rawhides.
As per the list, the prices of salted cowhide were fixed at Tk 85-95 per square feet in Dhaka and Tk 75-80 elsewhere, while the prices of goatskin were fixed at Tk 50-55, and buffalo skin Tk 40-45.
"Rawhide prices increased in the local market following multilayer buying by manufacturers, exporters, wholesalers and Indian traders as well as due to higher international prices during the season," BHSMA President Ali Hossain told FE.
"The prices did not come down even after two months of the Eid festival," he added.
Shahin Ahmed said they could not roll their capital and buy rawhides of sacrificial animals, as export, production and order delivery of leather items slowed down.
"If the tanners could not bring the rest of rawhides within the next 10-20 days, all those will be damaged. As a result, both the field-level traders and the tanners will be losers," he concluded.
The tanners also urged the political parties to reach a consensus for wellbeing of the country.
The impact of the ongoing political turmoil on export of leather and leather goods is yet to be assessed. But the political volatility is certainly affecting the sector, said the exporters.
"Our buyers are leaving us, no new orders are being placed, and scheduled shipments could not be made due to shutdowns and blockades. If the situation continues after December, we will be doomed," BFLLFEA president Mohammad Abu Taher told FE.
"Monthly export data of the leather sector does not bear mark of political calamity until October. But the November data is yet to be released. Surely both the exporters and the local businesses were affected in November," he added.
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