The tanners may set lower prices of rawhide for collection this year compared to last year’s as global market saw a fall in prices.
According to market insiders, the global rawhide prices plunged by 33% in last six months.
“The prices will be fixed in line with the international market rate. It will surely see a cut from last year,” said M Shahin Ahmed, chairman of Bangladesh Tanners Association.
He said this after a meeting with Commerce Secretary Hedayetullah Al Mamoon yesterday.
Leaders of BTA, Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh, and Bangladesh Hide and Skin Merchants Association attended the meeting held at the secretariat in Dhaka.
The business leaders proposed that the maximum price of per square foot rawhide of sacrificial animals should be at Tk45-50 in Dhaka and Tk40-45 outside Dhaka, the meeting sources said.
The prices of goats rawhide were proposed at Tk25-30 per square foot and of bakri at Tk15-20.
Last year, the rawhide prices of sacrificial animals were set at Tk70-75 per square foot in the capital and Tk60-65 outside the capital.
During the meeting, the business leaders said the price should be lowered this year considering the price fall in the international market and devaluation of euro against US dollar.
The tanners also have stocks at least 40% of rawhide collected during last year’s Eid-ul-Azha.
Hedayetullah Al Mamoon told Dhaka Tribune that the commerce ministry had urged the tanners to set prices at “rational and acceptable level.”
“While setting prices, the international price will be taken into account. At the same time it should also be considered that the low local price could lead to smuggling of rawhide to the neighbouring countries,” he said.
Meeting sources said commerce secretary had asked the traders to announce the prices by September 23.
The meeting decided that the commerce ministry would take necessary initiatives to set a price that could help people get fair prices for their rawhide and would save tanners from loss.