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Tanners also blame syndicate for abnormal rawhide price fall
makeshift-rawhide-collection-in-the-posh-gulshan-area-on-tuesday

Tanners also blame syndicate for abnormal rawhide price fall

Dhaka, Aug 14 – The government would take stern action against involved rawhides syndication considering the intensity of offence as seasonal traders in various places across the country either left the unsold rawhide on streets or bury the rawhides under the ground following a steep price fall.Earlier on Tuesday, the government has decided to give permission to export rawhides for ensuring fair prices for the traders.
Meanwhile, the leaders of Bangladesh Tanners Association (BTA) have urged the government to withdraw its decision to allow rawhide exports, on the grounds that it might cause a scarcity for the local industry.
Commerce minister Tipu Munshi has blamed the rawhide traders for abnormal fall of price.
However, seasonal rawhide traders and tanners blamed a ‘syndicate’ as price of cattle rawhide began to drop on the evening of Eid Day, on Monday.
Half the cattle slaughtered in Bangladesh throughout the year are sacrificed during Eid. Muslims have slaughtered around 125 million cattle this Eid, according to a government estimate.
Normally wholesalers buy the rawhide and skin of sacrificial animals from seasonal traders and sell these to tanners.
The 220 tanneries of Bangladesh process around 2.5 billion square feet hide and skin annually while 93 large and listed footwear producing firms make more than 378 million pairs.
“The government would take stern action those who are involved in rawhides syndication considering the intensity of offence. Rawhides are being sold at a lowest price ever in the past period,” road transport and bridges minister Obaidul Quader told reporters at the secretariat yesterday.
Regarding allegation of syndication, the minister replied, “I am not well aware about syndication. The matter of syndication existence is in our country—but it is needed to investigate into the matter impartially. A vested quarter is involved in syndication to gain personal interest.”
Whoever is involved behind the syndicate action will be taken as per law, Obaidul Quader said in reply to a query.
When drew his attention regarding BNP leader’s allegation against an Awami League leader’s involvement behind rawhide syndication, the AL general secretary Obaidul Quader replied, “tell him (indicating BNP leader) with evidence who is involved behind the syndicate. It is BNP’s old nature to make wholesale allegation. We will investigate regarding the matter.”
Meanwhile, commerce minister Tipu Munshi has blamed the rawhide traders for abnormal fall of rawhides this year.
He also alleged that the rawhide traders are involved in conspiracy to lowering the prices despite fixing the price of rawhide and skin by the government.
“It is not acceptable as both traders and government has fixed the rawhide price through a meeting before Eid. It is very much unfortunate and we noticed that the price abnormally comedown on Eid day. So, we have decided to allow export rawhides,” the commerce minister told reporters at his Rangpur residence yesterday.
He further said they never want to see the destruction of leather industry.
However, the tanners urged the government to withdraw its decision to allow rawhide exports, on the grounds that it might cause a scarcity for the local industry.
President of BTA Shahin Ahmed placed this demand at a press conference at its office in city’s Dhanmondi area yesterday morning.
“We will start collecting leather from August 20. In the meantime, the leather market hopefully will remain stable. We hope that the government will review its decision to export rawhides during this time,” he said.
Shahin Ahmed said such decision taken by the government will threaten the leather, leather products, and footwear industry as rawhide export will make the raw material less available in the domestic markets, fear those involved with the trade.
“The modern leather industry in Savar will be completely inaccessible due to the lack of raw leather required. Now if the government allows exports of raw hide, our investment will be compromised. 7,000 crore investment in the leather industry will be at risk” the president of BTA said.
A vested quarter is purposely reducing the price of rawhides. Responding to a question as to whether the Tanners Association is currently involved in this prevailing situation, Shahin Ahmed said, “We never buy rawhide. Usually wholesalers buy the rawhide and skin of sacrificial animals from seasonal traders and sell these to tanners.
Therefore, the Bangladesh Tanners Association is not involved in this price reduction of rawhides, he added.
Earlier on Tuesday, the government has decided to give permission to export rawhide for ensuring fair prices for the traders, said an official handout.
The handout, issued by commerce ministry, also sought cooperation of the traders to ensure the buy and sell of the rawhides at fair prices, fixed by the ministry.
It said, according to information, getting it from different sources, the rawhides are not being sold and bought at fixed prices. “The ministry is urging the traders related with the rawhide business to be more responsible,” the handout added.
It also urged the traders to preserve the rawhides maintaining proper system. The commerce ministry urged the divisional commissioners, deputy commissioners, Upazila Nirbahi Officers (UNO) and other concerned officials to cooperate with the government on this issue.
Per square foot cowhide price for Dhaka has been fixed Taka 45-50 while Tk 35-40 for the rest of the country. Besides, the price of male goat hide has been fixed Tk 18-20 while female goat Tk 13-15 this year. – Staff Reporter

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