Despite several attempts from the government to ensure better prices, seasonal traders and sellers of sacrificial rawhide across the country witnessed bigger blows in prices than those experienced last year.
Meanwhile, there were very few seasonal traders on Eid-ul-Azha day, which forced the people, who sacrificed animals, to donate rawhide to charity organizations.
For example, as per the government-set prices, a cattle rawhide measuring 20 to 30 square feet was supposed to be sold at Tk800 (20x40) and Tk12,00 (30x40) respectively.
Lowering the price from last year by 30%, the government had set a price of Tk35-40 per square foot of salted rawhide of sacrificed cattle in Dhaka, and Tk28-32 per square foot in other parts of the country.
The government also decided to allow rawhide export to ensure better prices.
However, a cowhide was sold ranging between Tk200 to Tk350 in different districts while goatskins were sold at Tk10 to Tk 15.
In most cases, goatskins were abandoned as traders were unwilling to buy them.
Mohammad Rasel, a resident of Sonargaon in Narayanganj, was one of the few people who found a buyer for rawhide.
“A couple of years ago, we sold a single piece of cattle rawhide for Tk1,500-2,000. This year, the buyer offered Tk300 for the rawhide of a cattle bought for Tk66,500,” he said.
According to Rasel, the seasonal trader said most of them were unwilling to buy rawhide this time as they saw a severe fall in prices and suffered losses last year.
Meanwhile, some seasonal traders claimed they were not getting the prices as set by the government from merchants.
Ain Uddin, a trader from Sylhet, brought 1,946 pieces of cow rawhides to sell at Posta in Old Dhaka yesterday.
“On an average, the prices per piece of cowhide stood at Tk350 with all costs. But the hide merchant offered Tk200 per piece," Ain Uddin told Dhaka Tribune.
"Since there was no other option, I had to sell it. Yet, I will receive the payment much later," he said.
For the last five years, the business was going through dullness but this year it worsened, said the trader.
However, the hide and skin traders blamed the cash crunch as well as price fall in the global market due to the Covid-19 pandemic for the low prices offered to seasonal traders.
“We are in severe fund shortage as the tanners did not pay our dues from the last few years. That is why we cannot offer better prices to the seasonal traders,” Aftab Khan, chairman of Bangladesh Hide and Skin Merchant Association told Dhaka Tribune.
"But we are trying to keep prices as set by the government," he added.
However, tanners did not shoulder the blame, rather pushing it on banks, as well as blaming the global market situation for the low prices.
“This year prices of hide in the global market went down as the demands for leather goods fell due to the pandemic. As a result, the government set the prices considering the market demands,” said Shakawat Ullah, general secretary of Bangladesh Tanners Association.
After the relocation of tanneries from Hazaribagh to Savar, the owners had to spend a lot but they did not get financial support from the banks. On the other hand, the banks did not provide loans as was promised to buy rawhides, claimed the trade leader.
"However, most of the dues of hide and skin merchants have been paid off and we hope they will be able to pay the traders," he added.
Meanwhile, tanners are slow to buy rawhide this year and instructed merchants to offer lower prices as they still have about 35% stock from last year.
“We have huge quantities of unsold processed leather, while the demand is declining," seeking anonymity, a tanner told Dhaka Tribune.
"Unofficially we discouraged merchants not to offer better prices," he revealed.
Tanners to start buying from Saturday
"As per our decision, the tanners will start purchasing salted rawhides from the merchants and other traders from Saturday," said Shakawat.
"We are promising to buy at government set prices from the merchants," he adds.
Absence of seasonal traders
Numerous people, who sacrificed animals on the occasion of Eid-ul-Azha, said they had donated the rawhide to charities as they could not find buyers.
On the other hand, the few traders who were willing to buy rawhide offered prices far lower than that mandated by the government.
Masudul Haque, a resident of Bashundhara Residential Area in Dhaka, told Dhaka Tribune: “Every year, there were many seasonal traders looking to buy rawhide on Eid-ul-Azha, but this time we did not see a single buyer.”
He added that three cows were sacrificed in his community this year, and they ended up donating the rawhide to a madrasa.
Md Raihan, from Morrelganj in Bagerhat district, told Dhaka Tribune: “A trader offered Tk250 for the rawhide of a cow bought at Tk90,000. I did not sell it. It is better to donate than to sell at this price as we cannot distribute such a small amount among the poor.”