Asif Showkat Kallol, Dhaka: The tanners have planned to buy hides and skins of the sacrificial animals at lower prices defying a commerce ministry guideline to this end, a commerce ministry official said.
The proceeds generally go to the orphanages and various Madrashahs across the country.
The tanners are preparing to buy rawhide at a nominal price during Eid-ul-Azha. In the meantime, the entrepreneurs of this industry are sending letters to various government divisions and departments, arguing why prices should be low, showing various excuses.
However, after several years, the government has decided to fix the price of animal skin once again. Sources said that the prices will be fixed keeping in mind that raw hides could be exported.
The Ministry of Commerce and Industry emphasises on maintaining discipline in the sector, expanding the market, ensuring fair prices, maintaining environmental standards and setting up the highest quality of production of finished leather.
At the initiative of these two ministries, several meetings have already been held with the stakeholders concerned. In all those meetings, the businessmen have sought the government’s utmost policy support to the flourishing of the industry. However, they are not interested in offering the right prices for sacrificial animal skin.
Many believe a kind of chaos would be created in the country over determining the rawhide price.
Over the last few years, the country’s reputation in the international market has been tarnished due to the improper practices by the tanners and finished leather manufacturers.
Foreign buyers have urged local manufacturers to maintain international standards. They have spoken out to ensure the right price for raw hides in the country. The recent meeting of the Ministry of Commerce on the development of the leather sector also highlighted the expectations of the international patrons. They have recommended setting up 100% compliant factories to maintain the environmental standards.
The commerce ministry has called an emergency meeting in the conference room of the ministry on Wednesday to determine the prices of the sacrificial animal skin. The price of raw hides will be set in the presence of the stakeholders.
In 2021, top officials of the commerce ministry and traders had fixed prices of cow rawhide at Tk 50-55 for Dhaka city and Tk 40-45 for other areas.
Rawhide goatskin prices were also increased by Tk 2 per sq ft to Tk15-16 per sq ft.
Asked about the pricing of raw hides, Senior Commerce Secretary Tapan Kanti Ghosh told the Business Insider Bangladesh that the government was in favour of fixing prices. And, it will be done.
He said the new price would be fixed keeping in mind that the beneficiaries of the raw hides, that is, orphanages and MAdrashahs would not be deceived.
International market prices will also be taken into consideration in determining the price. The Bangladesh Trade and Tariff Commission has already started working in this regard, he added.
The Secretary said the government would take all necessary steps to maintain order in the leather market.
Meanwhile, the stakeholders are saying that the Russia-Ukraine war has led to a rise in the prices of leather chemicals causing a recession across Europe amid a worsening flood situation across the country and the loss of livestock. Besides, rising gas, electricity, water and salt prices would make their business hard.
In this situation, the businessmen have demanded to increase in various types of policy support as well as easy bank loans.
A senior official of the industry ministry, who did not want to be named, told Business Insider Bangladesh that traders in the leather sector were circulating letters with various demands ahead of the upcoming Eid-ul-Azha.
A letter regarding the renewal of environmental clearance signed by Md. Joynal Abedin, Chief Executive Officer of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFL-LFEA) has been sent to various departments and ministries, recently.
In the letter, he highlighted various crises and said due to the suspension of bond license renewal, the factories are not able to import the required chemicals.
As a result, the processing of large quantities of raw hides at the time of Eid will be affected.
About Tk 22 crore square feet of leather is collected in Bangladesh every year. More than 60 percent of this leather is supplied during the sacrificial season. Of these, 64.83 per cent are cow skins, 31.82 per cent are goat skins, 2.25 per cent are buffalo skins and 1.2 per cent are sheep skins, respectively.
