EID-UL-AZHA brings the biggest opportunity for tanners to procure hides and skins of cattle and other animals slaughtered during the event. Over 50 percent of rawhides and skins used as raw materials by local tanneries is being collected on this occasion. But a big part of it is slipping out to India, as local agents engaged by Indian tanners are busy in the border areas to smuggle out it at handsome remuneration.
The risk has become yet greater when factory owners are not ready to pay good price to primary traders who collect leather from local agents. Banks have given easy loans and the government has fixed rawhide price much less this year than last year. It is much lower also than offered on the Indian side of the border to encourage smuggling.
It is known that the government has deployed additional BGB forces at Hilly border and other sensitive places to keep watch on smuggling and make sure it is not passing out across the border. India does not slaughter cattle and want to procure rawhides from Bangladesh during the Eid festival to run their tannery factories and make exports, although it has announced ban on cattle export to Bangladesh.
According to Bangladesh Tanners Association (BTA) sources about 55 to 60 lakh cattle were slaughtered this year during Eid occasion. It is expected that our local tanners would procure over 300 million square feet of rawhides and skin in this year’s Eid. If it is so, the total value of rawhides trade should exceed Tk 2,500 crore. But reports from local rawhides market are not encouraging. High cost of salt, which is used for rawhides processing, is affecting the entire process. An unusual price hike of salt in wholesale and retail markets ahead of the Eid-ul-Azha has led to significant increase in the processing cost. Labour cost is also too high.
On the other hand, the lower price of rawhides as fixed by the government is helping the industry owners but the rawhide dealers and traders are taking the brunt of pressure of the processing cost and fear of incurring losses. In these circumstances, supply of rawhides and skins from outside to the capital is also significantly low and many fear it may encourage smuggling.
Bangladesh is one of the exporters of leather goods to international market, it earns big amount of foreign exchange and provide jobs to many people. It is now treated as a thrust sector in the national economy. In our view the rawhide must be properly handled and preserved to produce quality goods for exports. Moreover, there must be enough vigilance at border to stop smuggling now or anytime later.
The risk has become yet greater when factory owners are not ready to pay good price to primary traders who collect leather from local agents. Banks have given easy loans and the government has fixed rawhide price much less this year than last year. It is much lower also than offered on the Indian side of the border to encourage smuggling.
It is known that the government has deployed additional BGB forces at Hilly border and other sensitive places to keep watch on smuggling and make sure it is not passing out across the border. India does not slaughter cattle and want to procure rawhides from Bangladesh during the Eid festival to run their tannery factories and make exports, although it has announced ban on cattle export to Bangladesh.
According to Bangladesh Tanners Association (BTA) sources about 55 to 60 lakh cattle were slaughtered this year during Eid occasion. It is expected that our local tanners would procure over 300 million square feet of rawhides and skin in this year’s Eid. If it is so, the total value of rawhides trade should exceed Tk 2,500 crore. But reports from local rawhides market are not encouraging. High cost of salt, which is used for rawhides processing, is affecting the entire process. An unusual price hike of salt in wholesale and retail markets ahead of the Eid-ul-Azha has led to significant increase in the processing cost. Labour cost is also too high.
On the other hand, the lower price of rawhides as fixed by the government is helping the industry owners but the rawhide dealers and traders are taking the brunt of pressure of the processing cost and fear of incurring losses. In these circumstances, supply of rawhides and skins from outside to the capital is also significantly low and many fear it may encourage smuggling.
Bangladesh is one of the exporters of leather goods to international market, it earns big amount of foreign exchange and provide jobs to many people. It is now treated as a thrust sector in the national economy. In our view the rawhide must be properly handled and preserved to produce quality goods for exports. Moreover, there must be enough vigilance at border to stop smuggling now or anytime later.
