News Desk: Tanners have cut the minimum purchase prices of rawhides for what they said were a lack of demand from international buyers, a weakening dollar and a huge stock from the previous year.
They will buy cowhides at Tk 70-75 per square foot in the capital and Tk 60-65 elsewhere the country.
M Abu Taher, president of Bangladesh Finished Leather and Footwear Exporters Association, announced the rates at a press conference in the capital. Leaders of Bangladesh Tanners Association (BTA) and Bangladesh Hide and Skin Merchants Association (BHSMA) were present.
Tannery owners last year had bought salted cowhides at Tk 85-95 per sft in Dhaka city and Tk 75-80 elsewhere.
This year, the price of goat hide has been set at Tk 30-35 per sft in the capital and that of Baqra at Tk 25-30, while buffalo hide will be bought at Tk 35-40.
Tanners last year spent Tk 50-55 for per sft of goat skin, Tk 40-45 for Baqra and Tk 40-45 for buffalo hide.
Abu Taher said big international brands are not interested in importing Bangladeshi leather as it is processed without considering environmental concerns.
Moreover, the US dollar has lost its value against the local currency, he pointed out.
At present, a total of 194 tanners buy rawhides during the Eid.
BTA Chairman Shaheen Ahmed said the prices of rawhides are very low now. The prices of leather goods have also come down in international markets.
“The Chinese government has imposed duties on import of leather goods which induced Chinese buyers to import less leather from Bangladesh. Moreover, political tension in Hong Kong has resulted in the cancellation of import orders,” he added.
About 22 crore sft of rawhide is collected in the country every year, half of which is stocked up during Eid-ul-Azha.
Rawhides worth about Tk 4,000 crore are traded on the Eid day alone, mentioned Shaheen.
Over 65 lakh cattle were sacrificed during the Eid-ul-Azha last year, according to data of the Department of Livestock.
In the 2013-14 fiscal year, Bangladesh exported leather, leather goods and footwear worth $1.30 billion, according to the commerce ministry. Japan, European Union and the US are the major markets for Bangladeshi leather and leather goods.
Ali Hossain, president of BHSMA, was present.