Apathy among rawhide traders continue

The widespread apathy among rawhide traders, be they seasonal or professional, continued as the prices of the hides plummeted to the rock bottom this year following the last year's debacle.

Business insiders alleged that the lack of cooperation from the bank and coupled with unsold rawhide of the last year also contributed to the free fall of rawhide prices.

The low demand from China, the main export destination of leather and leather goods also contributed to the low prices.

Even in many places, traders failed to find any buyers to sell the rawhides thanks to the lack of concerted effort from the government to address the problem as last year many traders dumped their rawhide to the river and ditches after failing to get the expected prices.

The government lowered the rawhide prices by 30 per cent this year than the last year aiming at creating a win-win situation for both parties—buyers and sellers.

Talking with The Business Post, retailers said, it is impossible to sell rawhide at the government determined price as bulk buyers are offering Tk 150 to Tk 600 per piece in cowhide while goatskin was being offered in between Tk 10 to Tk 50.

Mohammad Azam, 42 years old seasonal rawhide trader in Kalabagan area of the capital told the Business Post with frustration saying, “I have bought 12 cowhide and 6 goat skins from my area with the investment of Tk 4000. It is a matter of frustration that we are the victim of the syndicate as I managed to sell my collected rawhide with only Tk 2500.”

Commerce ministry opened a control cell to help the traders in rawhide trade affairs but Azam alleged that he didn’t get any help from the control cell despite repeated calls.

After waiting till 8 pm on the Eid day, a trader came and offered me the price.

The similar dismal situation was found in the capital city Chattogram, as sellers did not get the expected price in the face of low demand from buyers forcing the retailers to sell their rawhide at Tk 200 to Tk 700 per piece in Chattogram.

Shakawat Ullah, general secretary of Bangladesh Tanners Association, said, “Prices of rawhide is reasonable as about 30% of previous stock yet to be sold. We have not seen last year’s unprecedented price disaster, which is good.

He claimed that some parts of the different districts prices were low, but in many areas rawhides were sold at government-set prices.

According to the government estimation, rawhide collection is expected to be nearly 30 per cent less this year in comparison with last year as people sacrificed fewer animals this time because of the pandemic and the floods that submerged one-third of the country.

The prices were fixed by the government following discussion with merchants, tanners, and tariff commission.

The government fixed the prices of salted rawhides of cows and buffaloes at Tk 35 to Tk 40 per square ft in Dhaka which is 29 per cent lower and Tk 28 to Tk 32 per square ft in rest of the country which is also 20 per cent lower than the prices of last year.

The prices of goatskin were determined between Tk 13 and Tk 15 per square ft which is 27 per cent less than last year.

The government estimated that nearly one crore pieces of rawhides worth Tk 100 crore were either dumped or thrown away by seasonal and professional in the face of unexpected price fall causing a huge public outcry against the government inaction.

sh/wi