Higher price of salt ahead of Eid-ul-Azha worries tanners

Rezaul Karim | Published: September 11, 2014 00:00:00 | Updated: November 30, 2024 06:01:00

The Bangladesh Hide & Skin Merchants Association (BHSMA),Â have expressed concern over the higher price of its prime processing ingredient - salt, saying if this persists, it would gravely affect the tannery business significantly.
They wrote a letter recently expressing their concern to the Ministry of Commerce (MoC) urging the MoC to take immediate measures in this regard for the sake of the industry, sources said.
They said the price of salt has surged by more than 60 per cent against its price a year ago. Currently the price of each kg of salt (industrial consumption) is nearly Tk 11.
The BHSMA, a group of 275 merchants, apprehends that the price of salt will further rise before Eid-ul-Azha, the second largest Muslim festival, to cash in on its higher demand during the period, sources said.
However, the MoC sources said they are yet to take any concrete step on the issue.
While talking to the FE, a spokes person of the BHSMA said if the higher price persists till Eid-ul-Azha, they will have no other option but to procure raw hide and skin at cheaper prices to compensate the processing cost.
"We've to compete with the global players, if salt price remains high the processing cost will increase, so procurement cost must be low," said Md. Solaiman Mridha, vice chairman of the association.
He, however, said if the government takes necessary steps to control the price hike, the situation will improve.
The association leaders said the government might allow import of finished salts that remain comparatively much low even in India.
They also said the state-owned Trading Corporation of Bangladesh (TCB) may be asked to distribute salt during the period at fair price 15 days before Eid festival.
Local tanners procure around 4.0 million pieces of raw hide and skin during the Eid-ul-Azha, almost 50 per cent of its total annual collection, sources said.
They consume around 36000 tonnes of industrial salt during the holy Eid-ul-Azha.
Currently, price of per bag of salt varies from Tk 750 to Tk 800 in the market. But it was Tk 500 to Tk 550 in the last Eid-ul-Azha, according to the BHSMA letter.
Price of salt will increase during Eid-ul-Azha. On the other hand there will be serious salt crisis in the market, the letter said.