Rainfall damages some rawhides, slows collection process
Approximately 70,000 pieces of rawhide have entered the Savar Leather Industrial City on the outskirts of Dhaka as of 9pm on Thursday, said Executive Engineer of BSCIC Tannery Industrial Estate Md Mahfujur Rahman Rizwan.
The shipments started to increase as the day progressed, he added.
The persistent rain has slowed down the progress and resulted in some rawhides being damaged due to the heavy showers, said Sakhawat Ullah, general secretary of Bangladesh Tanners Association and owner of Salma Tannery.
He said around 5%-7% of the rawhides have been damaged due to the rain.
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Meanwhile, traders and individuals from Madrasas who brought rawhides from various areas, including Dhaka, are expressing dissatisfaction with the prices offered for their leather.
Md Manzurul Haque, who brought 80 pieces of cattle skin from Shimultala in Savar to the tannery estate from a Madrasa and Orphanage, informed The Business Standard that tannery owners and merchants are offering less than Tk200-Tk300 per piece of leather. This is a significant decrease compared to the Tk900-Tk1000 they received last year.
In response to the allegations of low prices, Sakhawat Ullah, the General Secretary of Bangladesh Tanners Association, stated, "Such incidents may happen in isolation, but the information we have is that every tannery is collecting rawhides at the government-set price."
The Bangladesh Tanners Association has set a target of collecting 1 crore pieces of rawhides this year.
However, the increased price of rawhides is adding extra strain to traders in the leather sector, as expressed by tannery owners.
Nurul Alam, the proprietor of Pragati Tannery in Savar Tannery Estate, stated, "Considering the state of the global economy, as the government has raised the prices of rawhides, we are compelled to purchase them at higher rates. However, this is exerting immense pressure on us."
Alam further mentioned that the price of salt and chemicals has also escalated due to syndicate influence, while the international market price for their leather remains unchanged. Consequently, traders face the challenge of managing this additional burden.
"There is nothing we can do. I will select and purchase good-quality leather at the fixed price, discarding the defective ones. I hope to collect around 5,000 to 7,000 pieces of rawhides today," added Nurul Alam.
The government has raised the price of salted rawhides of sacrificial cattle by Tk3 to Tk50-Tk55 per square foot in Dhaka and increased Tk5 to Tk45-Tk48 per square foot outside Dhaka for this year.
Despite the increased rawhide prices, Masud Chowdhury, the owner of Sadar Tannery, expects to gather over 20,000 hides today.
Masud Chowdhury stated, "Let's see what happens. We have no choice but to buy at higher prices; perhaps I will purchase and keep them in stock. If the buyers agree to the price, we will sell; otherwise, we will have to wait."
Deepak Chandra Saha, Officer-in-Charge (OC) of Savar Model Police Station, informed The Business Standard, "We have enhanced security measures throughout the leather industry area. Our police officers are working to ensure smooth traffic flow and prevent any road-related issues."
