Govt sets rawhide prices at 6-year low for Eid-ul-Azha

Staff Correspondent | Updated at 02:34am on August 10, 2018

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A file photo shows men loading rawhides of animals on a truck in Dhaka. The government on Thursday announced the prices of rawhides of animals to be sacrificed during the upcoming Eid-ul-Azha, setting the highest price at Tk 50 a square feet for cowhide and Tk 20 a square feet for goatskin, which are six-year lows. — New Age photo

The government on Thursday announced the prices of rawhides of animals to be sacrificed during the upcoming Eid-ul-Azha, setting the highest price at Tk 50 a square feet for cowhide and Tk 20 a square feet for goatskin, which are six-year lows.
Commerce minister Tofail Ahmed declared the prices following a meeting with leaders of Bangladesh Tanners’ Association, Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association and Bangladesh Hide and Skin Merchants’ Association held at the Bangladesh Secretariat in the capital.
‘Considering the international market and the capability of the local leather sector businesses, this year we have set the prices of rawhides lower than last year,’ the minister said.
He announced that the prices of salted cowhide would be Tk 45-50 a square feet in Dhaka and Tk 35-40 a square feet for outside Dhaka.
The buying prices of castrated-goat skin has been set at Tk 18-20 a square feet and that of goatskin at Tk 13-15 a square feet across the country.
The government and traders have been cutting prices of rawhides of sacrificial animals every year since 2013 and the price of cowhide decreased by 47.36 per cent and that of goatskin fell by 63.63 per cent in last six years while the prices of sacrificial animals almost doubled in the period.
At the meeting with commerce minister, leather sector leaders proposed decreasing the prices of rawhides of sacrificial animals by 25-30 per cent from the prices set in the previous year while the tariff commission proposed increasing the prices by Tk 5 a square feet.
Last year the government had set cowhide price at Tk 50-55 a square feet in Dhaka and Tk 40-45 a square feet for outside of Dhaka. The price of castrated-goat skin was set at Tk 20-22 a square feet and that of goatskin at Tk 15-17 a square feet across the country.
In the name of bringing discipline to the rawhide market, tanners started setting the prices of rawhides from 2013.
Since 2013, tanners have been cutting the prices of rawhides of sacrificial animals every year on flimsy pretext of fall in the prices of the item on the international market and high cost of relocation of tanneries.
According to the sector leaders, in the years of 2011 and 2012 tanners did not set the prices of rawhides of the sacrificial animals and the market price of cowhide was Tk 110-120 a square feet across the country in the years.
In 2014, tanners had set the price of per square feet of cowhide at Tk 70-75 in Dhaka and Tk 60-65 for outside Dhaka, goatskin at Tk 30-35 and buffalo skin at Tk 35-40 while they had set the price of per square feet of cowhide at Tk 85-95 in Dhaka and Tk 75-80 for outside the capital, goatskin for Tk 50-55 and buffalo skin for Tk 40-45 in the year 2013.
In 2015, tanners had set the prices of cowhide at Tk 50-55 a square feet in Dhaka and Tk 40-45 a square feet for outside Dhaka, which was 26-28 per cent lower than the prices set in 2014.
In 2016, tanners had set the prices of cowhide at Tk 50 a square feet in Dhaka and Tk 40 a square feet for outside Dhaka, castrated-goat skin at Tk 20-22 a square feet and that of goatskin at Tk 15-17 a square feet, which was 10 per cent lower than the prices set in 2015.
Bangladesh Tanners Association chairman Md Shaheen Ahmed said that the sector was passing through a tough time due to relocation of tanneries, liquidity crisis and international compliance issue.
He said that about 40 per cent of the rawhides procured in last year remained unsold.
Shaheen said they would procure 60 lakh rawhides this year.