In preparation for the upcoming Eid-ul-Azha, the government has raised the prices of salted cowhides in Dhaka city by 6 per cent, setting them at Tk 50-55 per square foot.
Outside the capital, the prices have been increased to Tk 45-48 per square foot.
The prices of goat hides remain unchanged, with he-goat hides at Tk 18-20 per square foot and she-goat skins at Tk 12-14 per square foot.
Commerce Minister Tipu Munshi announced these revised rates after a meeting with stakeholders of the leather sector including tanners and traders.
During Eid-ul-Azha 2022, the government increased the prices of salted cowhide by Tk 7 per square foot across the country compared to the prices of 2021. Last year, the prices were fixed at Tk 47-52 per square foot in Dhaka and Tk 40-44 per square foot elsewhere.
Tipu warns of allowing wet blue export
Commerce Minister Tipu Munshi at the meeting warned against manipulation of the rawhide market and threatened to resume issuing export permits for wet blue leather if tannery traders deliberately manipulate the market to lower hide prices this Eid. He cited that previous instances of allowing wet blue leather exports had resulted in price hikes.
"We have previously allowed the export of wet blue leather. The prices rise whenever export permits are given. So this year too, we will allow the export of wet blue leather if there is an attempt to lower the price," he said.
Explaining the decision to keep goatskin prices unchanged, Tipu Munshi said that it was based on experiences from the previous year. He mentioned that if there is high demand, buyers can purchase hides at a higher price than the fixed rate. He emphasised that the price depends on the demand and supply, and the government has set a minimum price while allowing the sale of hides at higher rates.
Market monitoring and regulation
Regarding the monitoring of rawhide prices, Tipu Munshi highlighted the importance of market regulation. Monitoring committees, consisting of divisional commissioners, deputy commissioners, police superintendents, and other relevant parties, are responsible for overseeing market prices and taking necessary actions accordingly. He added that due to the lack of a proper storage system, even 10 per cent of the rawhides cannot be stored.
Concerns over salt prices
When questioned about the price of salt, the commerce minister acknowledged the illogical price hike. He suggested that the Ministry of Industries, responsible for salt production and pricing, would be better equipped to explain the situation. He expressed the government's intention to stabilise salt prices if provided with the exact price by the ministry within a day or two. Additionally, he stated that appropriate measures would be taken against those illegally stockpiling salt.
Commerce Secretary Tapan Kanti Ghosh, Bangladesh Trade and Tariff Commission Chairman Faizul Islam, Bangladesh Tanners Association President Shaheen Ahmed, and representatives of the rawhide traders attended the meeting.
