Raw material price contention in Bangladesh
Reports indicate that there have been heated disputes between tannery owners and producers of hides and skins over pricing.
According to the Financial Express newspaper, tanners are complaining that raw material quality is suffering because price negotiations are taking too long. Tanners are reportedly prepared to pay Tk35 per square-foot for salted skins and hides, while suppliers are asking for Tk60.
"It is hardly possible to purchase raw hides and skins at the prices demanded by the root-level suppliers," Rezaul Karim Ansari, chairman, Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLFEA).
However, Abul Hossain, of Abul Hossain Hide Traders, said: "We've added salt and other chemicals to retain quality. So we need better prices for the hides."
Neither side appears prepared to compromise at the moment but it is hoped a solution will be found soon.
