The prices are lower than last year
The government on Thursday set the prices of salted raw hides from sacrificed animals ahead of Eid-ul-Azha, the largest source of raw hides.
Commerce Ministry Tofail Ahmed announced the prices at a meeting with the stakeholders and leaders of the industry at his office in Dhaka on Thursday.
The government brought down the prices of salted raw hides to support exporters because they have been facing a lot of difficulties since the relocation of the tanneries to Savar from Hazaribagh.
“The leather industry is in trouble due to the relocation of tanneries to Savar from Hazaribagh. The prices of processed leather in the global markets went down resulting in unsold stock from last year. This is why we are supporting the industry by reducing the prices of rawhides to recover from the losses,” Tofail Ahmed said answering a question.
He also said all the export goods have posted positive growth except leather and leather goods in the last fiscal year.
The prices of salted raw hides of sacrificed cows have been set at Tk45-50 per square foot for the Dhaka region and Tk35-40 for other parts of the country.
Last year, the price per square foot of salted raw hide of sacrificed cows was set at Tk50-55 for the Dhaka region and Tk40-45 for outside of Dhaka.
The price of salted raw hides of sacrificed goat has been set at Tk18-20 which was Tk20-22 last year.
However, the Tariff Commission has recommended to the Ministry of Commerce to set of prices of salted raw hides at Tk55-60 per square foot for the Dhaka region and Tk45-50 for other parts of the country.
The commission also recommended setting the prices of salted raw hides of goats at Tk25-27.
According to the industry insiders, 50% of total rawhide collection is made during the Eid-ul-Azha.
In the last fiscal year, Bangladesh’s export earnings from leather suffered a huge drop of over 12% at $1.08 billion, down from $1.23 billion in fiscal year 2016-17.
Meanwhile, tanners and leather products manufacturers claimed that global buyers have left Bangladesh due to image crises.
“Due to lack of infrastructure, image crisis, liquidity crisis, and lack of branding, the sector has suffered loses,” said Bangladesh Finished Leather, Leather Goods, and Footwear Exporters Association Chairman Mohiuddin Ahmed Mahin.
“We are trying to improve the image and restore buyer confidence. If the infrastructure at the Savar Leather Industrial park is finished then the industry would have a getter global image,” he added.
The Industries Ministry allocated plots to 155 tannery owners through the Bangladesh Small and Cottage Industries Corporation (BSCIC) in the Leather Industrial Park established on 200 acres of land in Savar.
So far 110 tanneries have restarted production there and others have yet to start.