Tanners refuse to buy raw hides
An emergency meeting of the Bangladesh Tanners Association (BTA) was held on November 21 after days of price discussions between raw hide traders, dealers, wholesalers and tanners. Following the meeting, tanners decided to stop buying raw hides for an indefinite period. “We've decided not to purchase any animal hides until the ongoing price issue is settled," BTA chairman, Shaheen Ahmed, told the Financial Express.
He said the prices charged by the traders were much higher than their affordable level. “If we agree to pay their price, then we have to raise the prices of exportable finished leather from our buyers, which is not possible given the present international market price,” he said.
According to the association, the export prices of finished leather are varying between $1.05 and $2.10 per square foot. Reports have suggested that seasonal traders and wholesalers have bought up bovine hides at rates that were 40% to 45% higher than the price fixed by the authorities. The tanners, meanwhile, are refusing to buy the hides at higher rates than the fixed ones. Despite the turmoil, traders remain upbeat about getting higher prices for their unsold raw hides. “We’re still hopeful that the tanners will accept our prices,” Delwar Hossain, general secretary of Bangladesh Hide and Skin Merchant Association (BHSMA), said, adding that the prevailing situation was not a good sign for the sector, which saw a setback due to an outbreak of anthrax which began in the third week of August. Aftab Ahmed, president of BHSMA, is also hopeful that trade will pick up. “Tanners outside Dhaka have started procuring raw hides at higher rates, which is a very positive sign," he said. He also said his association has received the green signal from several tannery owners in Dhaka regarding procurement of the unsold raw hides. “I hope the purchase of animal hides will resume in full swing,” he said. During Eid-ul-Azha, the second biggest Muslim festival, tanners procure around 50% of the total annual supply of raw hide. The number of animals slaughtered during this Eid-ul-Azha was 20% higher than in the previous year, which amounts to around 6 million animals.
