Low prices of rawhide cause worry

We are currently witnessing a countrywide mismanagement and organised chaos in the rawhide industry

The fact that low prices of rawhide would disappoint our traders this year was well anticipated just after the Eid-ul-Azha had come to end. Supply of rawhide to the newly relocated tanneries was poor; transporting raw hide had become difficult because of the damaged roads in various parts of the country, and then followed the low price fixed by the government.  Most importantly, the last - low prices of rawhide and skins of sacrificial animals have caused distress to the seasonal leather traders of Chandpur and other nearby seven upazilas. They believe they are most likely to incur losses when their rawhides and skins are sold to the middlemen in Chandpur and other areas.

We are currently witnessing a countrywide mismanagement and organised chaos in the rawhide industry.  The government had fixed Tk. 25 per foot of rawhide and Tk. 40 per foot for pucca hides. Last year, the prices of the skins of full-sized bulls and cows were Tk. 1,300 or Tk. 1,400 or Tk. 1,500 per piece. Understandably, it is the pricing to have triggered the predicament. It is for this reason we always stressed on government authorities concerned to incorporate relevant stakeholders in the price fixing mechanism. However, all the traders apprehend severe losses this year, given the low rates fixed by the government. They doubt they would be able to make sufficient profits by selling “chemically treated hides” to the big merchants in Dhaka this year. The processing of hides entails the use of salts and chemicals, which involves further expenditures.

Following the fear of losses, the best way to tackle it and minimize the losses would be to identify the risk factors together and address them the quickest, meaning traders and authorities concerned should sit and jointly decide how to install discipline and, if necessary, re-fix the prices of rawhide in the industry. Because of prices of rawhide and skins being much higher in India many leather traders expressed apprehensions that this year’s rawhides and skins may most likely be smuggled into that country. Our border guards and law enforcement agencies have a lot to do to prevent this highly probable case of smuggling.

Finally, the low price factor will in some way impact our export based leather industry, so now it has become doubly important to team up and tackle potentially big losses. 

Low prices of rawhide cause worry

We are currently witnessing a countrywide mismanagement and organised chaos in the rawhide industry

The fact that low prices of rawhide would disappoint our traders this year was well anticipated just after the Eid-ul-Azha had come to end. Supply of rawhide to the newly relocated tanneries was poor; transporting raw hide had become difficult because of the damaged roads in various parts of the country, and then followed the low price fixed by the government. Most importantly, the last - low prices of rawhide and skins of sacrificial animals have caused distress to the seasonal leather traders of Chandpur and other nearby seven upazilas. They believe they are most likely to incur losses when their rawhides and skins are sold to the middlemen in Chandpur and other areas. We are currently witnessing a countrywide mismanagement and organised chaos in the rawhide industry. The government had fixed Tk. 25 per foot of rawhide and Tk. 40 per foot for pucca hides. Last year, the prices of the skins of full-sized bulls and cows were Tk. 1,300 or Tk. 1,400 or Tk. 1,500 per piece. Understandably, it is the pricing to have triggered the predicament. It is for this reason we always stressed on government authorities concerned to incorporate relevant stakeholders in the price fixing mechanism. However, all the traders apprehend severe losses this year, given the low rates fixed by the government. They doubt they would be able to make sufficient profits by selling chemically treated hides to the big merchants in Dhaka this year. The processing of hides entails the use of salts and chemicals, which involves further expenditures. Following the fear of losses, the best way to tackle it and minimize the losses would be to identify the risk factors together and address them the quickest, meaning traders and authorities concerned should sit and jointly decide how to install discipline and, if necessary, re-fix the prices of rawhide in the industry. Because of prices of rawhide and skins being much higher in India many leather traders expressed apprehensions that this years rawhides and skins may most likely be smuggled into that country. Our border guards and law enforcement agencies have a lot to do to prevent this highly probable case of smuggling. Finally, the low price factor will in some way impact our export based leather industry, so now it has become doubly important to team up and tackle potentially big losses.