Commerce Minister Tipu Munshi on Thursday announced the annual rawhide prices just before Eid-ul-Azha, which apparently bypassed the recommendations made by his ministry's Trade and Tariff Commission, including dual slabs which could have avoided price infighting seen in previous years.
During a stakeholder meeting held on the day, it was informed that the price of cattle rawhide has been increased from last year by Tk5 per square feet, at Tk40-45 against Tk35-40 per sq ft last year.
It is Tk5 less than the rate of Tk45-50 set in 2019.
According to a report Dhaka Tribune published on Sunday, the Trade and Tariff Commission proposed determining prices on two specific varieties, unsalted and salted, to avoid abysmally-low prices which have been plaguing seasonal rawhide traders during Eid for a long time now.
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But on Thursday's meeting with all the stakeholders, Commerce Minister Tipu Munshi said that the verdict was given to appease the relevant business community, namely rawhide merchants and tanners.
"I am keeping your word," he told the traders during the virtual meeting.
Cattle rawhide outside of the capital has been set to Tk33-37 per square feet.
Goatskin prices also increased by Tk2 per sq ft, to Tk15-16 per sq ft.
Commerce Secretary Tapan Kanti Ghosh had previously proposed a price of cow rowhide Tk50-55 in Dhaka and Tk40-45 outside Dhaka, similar to the prices in 2018.
However, the traders did not agree to the prices proposed by the Trade and Tariff Commission.
During the meeting, Commerce Minister Tipu Munshi said: "We have fixed the price of rawhide to ensure its fair price. My appeal to the owners of the leather industry is simply to accept it. We do not feel comfortable exporting wet blue leather. However, we have to take this decision because there is no fair price. When we see that the fair price of leather is being ensured, we will no longer allow it to be exported."
Before that, Zakia Sultana, secretary to the industries ministry, informed in the meeting that the government has already given permission to export 12 million square feet of wet blue.
However, considering the situation, another 10 million square feet of wet blue will be allowed to be exported soon.
Abu Farah Md Nasser, deputy governor of Bangladesh Bank, informed in the meeting that a total of 9 banks, including 4 state-owned banks, have fixed their loan amounts for buying rawhide, which accumulated to Tk583.09 crore.
Tanners and rawhide merchants can also reschedule their previous defaulted loans with a 3% down payment by August 31, he added.
Munshi urged all concerned to apply salt on animal hides soon after their sacrifices.
Bangladesh is set to celebrate the Eid-ul-Azha on July 21.