Time to consider fresh procedure of rawhide collection, say experts

Before Eid-ul-Azha, the government announced several new facilities for tanners in order to maintain stability in rawhide prices. Many traders were quick to take advantage of these facilities but were not so inclined to pay for rawhides when the time came.

Every year during Eid-ul-Azha, warehouse keepers and dealers collect rawhides and seasonal traders and store them with salt. Tanners then collect these hides from the storekeepers according to their convenience.

This year, slaughter of animals decreased by 25 to 30 percent due to various reasons including the coronavirus epidemic and flood. The target this year was to collect 70 to 75 lakh peices of rawhides.

Meanwhile, the government reduced the price of hides by 20 to 29 percent compared to last year right before Eid.

In Dhaka, the price of salted cow skin was fixed at Tk 35-40 per sq ft, which was Tk 45-50 last year. In this case, the price was reduced by 29 percent compared to last year. 

Outside Dhaka, the price was set at Tk 28-32, from Tk 35-40 last year. In this case, the price was reduced by about 20 percent compared to last year. 

Besides, goat leather was set at Tk 13-15 in across the country, which was Tk 18-20 last year. In this case, the price was reduced by 26 percent compared to last year. 

However, rawhides of the sacrificial animal were not bought and sold at the fixed price. Due to non-availability of fair price and failure to preserve rawhides at the right time, at least 20 percent of the rawhides were not sold after the sacrifice and were wasted. 

The price of leather sold was also low. Each cow skin leather was sold for Tk 200 to a maximum Tk 800. And the price of goatskin was only Tk 10 taka. 

Sakhawat Ullah, General Secretary of Bangladesh Tanners Association (BTA), an organization of tannery owners, told The Business Post, tannery owners would start collecting salted leather from next Saturday. Salted leather will be bought from storekeepers and wholesalers at the price fixed by the government. Prices will be given according to the quality of the leather.

"We do business with stockists all year round. They know how much any leather costs. The price of leather before the Eid is fixed only for seasonal traders. But they do not want to understand the business. They don't even know how much to buy,” he said of the anarchy over leather prices at the retail level.

“Many do not even know when to bring it. Due to this, there is inconsistency in the market. Many people collected the leather and brought it to sell in the yard the next day. That skin is ruined. Thus, every year thousands of animal skins are lost due to lack of experience of seasonal traders. By doing so, they are harming themselves on the one hand and wasting the resources of the country on the other,” he added.

It is learned that even though the price was fixed by the government, no one paid attention. In many places, cow skins were sold for two to three hundred taka, and goat skins have not matched even one hundred taka.

Meanwhile, international buyers are also not entering the Bangladeshi market due to non-compliance with international market standards at various stages of raw leather collection and processing. 

In this situation, economists say, it is time to introduce alternative methods of collecting rawhides. Area-based representative can be appointed for rawhides collection. Each area can also be leased to a rawhide collector like a cattle market. And proper procedure for leather collection and processing must be followed there.

Private research organization Center for Policy Dialogue (CPD) Research Director Khondaker Golam Moazzem told The Business Post, "Leather is a raw material. The problem with this urgent raw material is in its demand and supply system. This year, there was a negative growth of 28 percent in leather exports from our own country. Besides, 50 percent of leather is exported to China. There is no demand in the Chinese market now.”

A chaotic situation has been created in the leather goods market. Although there was an opportunity to export rawhides to India, the matter was informed only two-three days before Eid. Again, there was no campaign for Indian traders to buy leather from Bangladesh. As a result, it has become difficult to export leather during Eid. 

Senior Research Fellow of Bangladesh Institute of Development Studies (BIDS) Nazneen Ahmed said the way the price of leather has been falling for the last two years, many businessmen are not attentive enough to maintain the quality of the skins as before. This ruins the quality of the skin at the collection stage. 

Also, tannery owners are also not benefiting from the seasonal traders who are not connected to the industry. So, we must think anew about the process of collecting leather, she added.