Dhaka, Thu, Nov 2017

Economy

Tanners find 3 reasons behind low prices of rawhide

04 September 2017,Monday, 22:03



Tanners have blamed the low prices of the rawhide of this year’s sacrificial animals on three factors -- non-availability of bank loans, sudden shutdown of many tanneries and an artificial hike in salt price, reports UNB.

“The prices of rawhide are low this year as many tanneries couldn’t go into operation in the Savar Tannery Estate while tanners couldn’t avail themselves of adequate bank loans to purchase rawhide and prices of salt were hiked artificially,” said Chairman of Bangladesh Tanners Association (BTA) Shaheen Ahmed on Monday.

“Being failed to get bank loans this year, many tanners couldn’t give money in advance to their agents and hoarders to purchase the rawhide, which contributed to the low prices,” he said.

The tanners are facing financial crisis as all tanneries were shut down suddenly in the capital’s Hazaribagh area to force these to be shifted to Savar and many of the factories still remain closed, he said.

The hoarders and middlemen might have played a role in keeping the prices of rawhide low, he added.

Shaheen said they asked businessmen and hoarders to preserve their rawhide with salt for 40-45 days as tanneries will collect within the period. “There’s nothing to be worried about the prices of rawhide.”

Echoing Shaheen, BTA General Secretary Shakhawat Ullah also noted the three main reasons behind the low prices of rawhide.

“We’re facing a financial crisis due to the relocation of tanneries to Savar from Hazaribagh. Many tanneries couldn’t properly pay bank loans taken before the last Eid-ul Azha. Being failed to get bank loans, we couldn’t provide money in advance to our agents to buy rawhide this year,” he said.

Noting that only 70 tanneries had been able to go into operation in the Savar Tannery Estate, he said over 80 more are yet to start functioning.

About the salt prices, Shakhawat said though there was salt available in the market, the price of each sack having 72-74kg salt was Tk 1,400 during this Eid-ul Azha, which was Tk 1,000-Tk 1,050 just a month ago.

Noting that the tanneries collected salted rawhide from hoarders and seasonal businessmen within 15-30 days after Eid-ul Azha in the previous years, he said it’ll take 40-45 days to collect those this year due to the relocation of the tanneries.

The BTA general secretary asked the law enforcers to strengthen their vigilance to prevent rawhide smuggling from the country. “We’re worried about possible smuggling of rawhide this year as it’ll take more time for tanneries to collect rawhide from the field.”

According to the BTA, the country’s tanneries collect 60 percent of their annual rawhide during Eid-ul Azha.

This year, it estimated that the tanneries can procure some 80 lakh rawhide of sacrificial animals during Eid-ul Azha. Of these, 50 lakh are cowhide, 20 lakh goat rawhide, five lakh buffalo rawhide and five lakh sheep rawhide.

There were 222 tannery industrial units at Hazaribagh, which were shut down in April last by the government to force these to be shifted to Savar.

Seasonal businessmen and hoarders purchased most of the rawhide at Tk 500-Tk 1,000 this year, though tanners earlier announced that the prices of cowhide at Tk 50-Tk 55 per square feet for the capital and Tk 40-Tk 45 for outside Dhaka.

Mustafa Kamal, a resident of Moghbazar, said he sold off his rawhide of the sacrificial cow, which cost Tk 75,000, at only Tk 900.

 

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