Traders fear huge loss

Hide and skin traders in Sirajganj district are apprehending losses at around Tk 100 crores this year for failure to sell raw hides.
The owners of warehouse and tanneries are yet to come in large number to buy the hides although a week has passed since the celebration of the Eid-ul-Azha, when thousands of cows and goats were slaughtered.
Hide and skin traders said most of the small and seasonal hide traders purchased hide and skin at prices higher than the rates fixed by tannery owners.
 Tannery Owners Association had fixed the price of per square feet of cattle hide at between Tk 45 and Tk50 and goat or sheep at Tk 20-Tk 25.
But, most of the small and seasonal hide traders in the region bought per sq.ft of cattle hide at Tk 60-Tk 70 and goat or sheep skin at Tk 40-Tk 50.
However, the warehouse owners have purchased the cattle hide at Tk 80-Tk 90 from the small and seasonal traders.
 Sirajganj Hide and Skin Traders Association sources said tannery owners are not coming to Sirajganj for purchasing hide as the local traders have bought rawhide at higher than pre-fixed rates. Local small and seasonal traders spent Tk 30 to Tk 35 in excess for purchasing per sq.ft hide.
If the hides are not bought in time by the tannery owners, local traders and warehouse owners may face losses at around Tk100 crores, the association leaders said.
 In Sirajganj Chamragudam (hide storehouse) area, warehouse owners have now around one lakh pieces of unsold hide worth at around Tk 100 crores. Of which, the number of cattle hide is 60,000 pieces, while goat and sheep’s skin have been estimated at around 40,000 pieces.
In this situation, many believe, the unsold hides might be smuggled to India unless the tannery owners buy those shortly.
 Hide traders said once there were about 200 hide traders in the district town. But the number has fallen to 40-50 due to frequent losses. Besides, the tannery owners do not pay their dues in time showing different excuses.
 Abul Mansur, 45, a seasonal hide trader in Sirajganj town, said he purchased 2000 pieces of hides on the Eid day. Of them, 500 hides are of goat and sheep.
The trader said he has bought hides, which now remain unsold, with money borrowed from moneylenders at 36 per cent interest. “How can I repay the loan?” he asked
 Shahadat Hossain, 50, a rich hide trader of Chamragudam area, said it is possible to store the hide for a month after processing with salt. After that time, the hides will start rotting. For this reason, they are in fear of incurring huge losses, he said.
 Mukta Siraji, President of Chamber of Commerce and Industries in Sirajganj, said hide traders are also in difficulties in processing the raw hide because of extremely high price of salt.
The price of salt has increased by Tk 200 to Tk 300 per sack in places. A section of dishonest traders has created artificial
crisis of salt and is asking high prices from the hide traders taking advantage of the situation.

 

Traders fear huge loss

Hide and skin traders in Sirajganj district are apprehending losses at around Tk 100 crores this year for failure to sell raw hides. The owners of warehouse and tanneries are yet to come in large number to buy the hides although a week has passed since the celebration of the Eid-ul-Azha, when thousands of cows and goats were slaughtered. Hide and skin traders said most of the small and seasonal hide traders purchased hide and skin at prices higher than the rates fixed by tannery owners. Tannery Owners Association had fixed the price of per square feet of cattle hide at between Tk 45 and Tk50 and goat or sheep at Tk 20-Tk 25. But, most of the small and seasonal hide traders in the region bought per sq.ft of cattle hide at Tk 60-Tk 70 and goat or sheep skin at Tk 40-Tk 50. However, the warehouse owners have purchased the cattle hide at Tk 80-Tk 90 from the small and seasonal traders. Sirajganj Hide and Skin Traders Association sources said tannery owners are not coming to Sirajganj for purchasing hide as the local traders have bought rawhide at higher than pre-fixed rates. Local small and seasonal traders spent Tk 30 to Tk 35 in excess for purchasing per sq.ft hide. If the hides are not bought in time by the tannery owners, local traders and warehouse owners may face losses at around Tk100 crores, the association leaders said. In Sirajganj Chamragudam (hide storehouse) area, warehouse owners have now around one lakh pieces of unsold hide worth at around Tk 100 crores. Of which, the number of cattle hide is 60,000 pieces, while goat and sheeps skin have been estimated at around 40,000 pieces. In this situation, many believe, the unsold hides might be smuggled to India unless the tannery owners buy those shortly. Hide traders said once there were about 200 hide traders in the district town. But the number has fallen to 40-50 due to frequent losses. Besides, the tannery owners do not pay their dues in time showing different excuses. Abul Mansur, 45, a seasonal hide trader in Sirajganj town, said he purchased 2000 pieces of hides on the Eid day. Of them, 500 hides are of goat and sheep. The trader said he has bought hides, which now remain unsold, with money borrowed from moneylenders at 36 per cent interest. How can I repay the loan? he asked Shahadat Hossain, 50, a rich hide trader of Chamragudam area, said it is possible to store the hide for a month after processing with salt. After that time, the hides will start rotting. For this reason, they are in fear of incurring huge losses, he said. Mukta Siraji, President of Chamber of Commerce and Industries in Sirajganj, said hide traders are also in difficulties in processing the raw hide because of extremely high price of salt. The price of salt has increased by Tk 200 to Tk 300 per sack in places. A section of dishonest traders has created artificial crisis of salt and is asking high prices from the hide traders taking advantage of the situation.