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Hides price has risen 40% this year

3.Mahmud-Hossain-Opu-(20)The global price of  hides has risen 40% this year but sellers in Bangladesh are not reaping the benefits due to collusion by industry bodies.

The Bangladesh Tanners Association (BTA), Leathergoods & Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB), and Bangladesh Hide and Skin Merchants Association (BHSMA) have jointly fixed prices at Tk85-Tk90 per square foot of hide in Dhaka and Tk75-Tk80 per square foot for areas outside the capital.

In addition, prices for hides of bullock have been set at Tk50-Tk55, for goat at Tk40-Tk45 and for buffalo at Tk40-Tk45 throughout the country.

According to BTA, tanners cannot buy hides below Tk2,000 and the highest prices rose to Tk3000 as per the length of hides.

“It’s a raw material and you cannot sell at fixed rate,??? said BTA secretary general Abdul Hai, while urging the government to strengthen security measures across the border to stop smuggling of hides to India.

Sohel Khondker, a resident of Mirpur 10 in the capital, said: “I have sold my sacrificial cow’s hide for Tk1,300, which was around 20 square feet. But I did not make a bargain as it was donated to a Madrassa.???

An Indira Road resident in Farmgate area said: “I have sold a sacrificial cow’s hide for Tk1,600, which was supposed to be sold at over Tk2,000 as per the market prices.???

He alleged that a young group backed by political parties dominated the area and barred buyers from entering there.

Mustafizur Rahman Mintu, a trader of hides, told the Dhaka Tribune that he had sold hides at Tk100-Tk115 per square foot to the tanners, even though the BTA had asked traders to buy hides at Tk85-Tk90.

“We buy hides of Dhaka area at higher prices because of their good quality and low preservation cost,??? said BTA President Shaheen Ahmed, adding the hide procurement target must be fulfilled as the supply of cattle exceeded demand.

Ahmed alleged that a group of people who did not have experience were making the market volatile as they bought the hides against higher prices. Currently, one square foot of processed leather is sold at $1.4 in the global market.

According to BTA, the country’s growing leather sector needs 250 million cubic feet of rawhides every year just to meet the local demand.

According to the Department of Livestock, around 48% of rawhide collection is made during Eid ul-Azha, 10% during Eid ul-Fitr, and 2% in Shab-e-Barat and Kali Puja.

In 2012-13, Bangladesh exported $561.35m of leather and finished leather goods while in the previous year the figure was $430m, according to Export Promotion Bureau data.


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