The rawhide traders and tanners claimed that their business might take heat of sagging demand of rawhide, finished leather and leather goods in the global market.
The price of per square feet leather slipped between 2 and 3 US cents in the international market during last one month, according to them.
However, the Index Mundi, a commodity price index, said the month to month per pound hide price increased by 2.94% in August.
To fix the procurement prices of rawhide during Eid-ul-Azha, the commerce ministry is likely to sit with the tanners on September 28, official sources said.
Eid-ul-Azha, when the Muslims sacrifice animals such as cattle, is likely to be observed on October 6 depending on moon sighting.
Almost half the total raw hides in the country are procured during the Eid, one of the biggest Muslim religious occasions.
“This year might not be good for raw hide business,” said Chairman of Bangladesh Hide and Skin Merchants Association Ali Hossain.
Demand for hides and skin is on the decline due to falling prices of finished leather goods both in the international and domestic markets, he said.
Ali Hossain estimated the rawhide and skin valued around Tk3,000 crore might be traded this season, a slightly up from the last season’s Tk2,500 crore.
Tanners have targeted to procure over 1 crore pieces of rawhide and skin this year, while the amount was 95 lakh last year, according to the Bangladesh Tanners Association (BTA).
“We are worried about the falling prices in the international market, and the recent flood might put a damper on rawhide and skin business,” said BTA President Md Shahin Ahmed.
“Export orders have already been scrapped by the overseas buyers due to sagging demand,” he said.
Export Promotion Bureau data showed the leather exports declined by more than 8% during July-August period this year over the same period last year.
Md Shahin Ahmed said the rawhide prices usually rise 10% every year during the Eid-ul-Azha in the local market.
Per square feet price of rawhide was procured at Tk85-90 in Dhaka and Tk75-80 out of Dhaka last year. Last year price bullock hide was fixed at Tk50-55 per square feet, buffalo hide Tk40-45 and goat hide Tk40-45.
The tanners have sought credit worth Tk400 crore from the four state-owned banks - Sonali, Janata, Agrani, and Rupali. The tanners received Tk365 crore loans last year.
Almost 50% of the annual rawhide is procured during Eid-ul-Azha, 10% on Eid-ul-Fitr and 2% on Shab-e-Barat, according to the Department of Livestock.
Bangladesh’s leather goods sector is gradually emerging as a $1bn industry. The estimates said almost 90% of the country’s leather and leather goods come from Hazaribagh area in Dhaka.
China, South Korea, Japan, Italy, Germany, Spain and the United States are the main destinations of the Bangladeshi rawhide and skin.
