The exporters will get all the assistance necessary from the government to control ongoing meltdown of the rawhide industry
Commerce Minister Tipu Munshi said the government has decided to allow export of rawhide which will effective immediately considering the current situation.
While talking with journalists at his house in Rangpur, the minister said the syndication in the rawhide and tannery markets has put the whole industry at risk.
"We are taking decisions considering the well-being of the overall industry. We have decided to allow rawhide export and provide necessary support to the exporters right away," he added.
He said: "The government has observed the fact that rawhide is not being traded as per the government set prices. Although the prices were set after discussing with all the stakeholders but there is no reflection of that in the market.
"The amount of money the tannery owners and animal skin traders are offering is way below the government set prices. In order to ensure the safety of the grassroots level rawhide traders, the decision of export has been taken."
The Bangladesh Tannery Association, however, in a press briefing in the same day demanded withdrawal of the government's decision of rawhide export claiming it would affect the local leather industry.
During this year's Eid-ul-Azha, prices of collecting rawhide have hit the lowest in recent history causing small traders huge losses.