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The Financial Express

Rawhide prices dip further this year

| Updated: July 27, 2021 10:27:05


Rawhide prices dip further this year

Dhaka city saw fewer traders, seasonal or otherwise, buying rawhide and skin of sacrificial animals on the Eid-ul-Azha days this year and those who were active bought the items at throwaway prices.

Wholesale rawhide merchants, however, claimed that they bought the rawhides and skin at the government-fixed prices.

The traders and merchants said the availability of rawhides and skin might fall short of the target by 25-30 per cent.

The traders in Dhaka claimed that they purchased rawhides at the government-fixed prices. But, seasonal traders offered the highest price at Tk 300 for a piece of rawhide and Tk 20-50 for a piece of goat skin in different areas of city.

Many people donated rawhides to various Madrashas and orphanages instead of selling those to the traders. Some people just dumped the same roadside or garbage bins.

The government had earlier fixed the prices of rawhide at Tk 40-45 per square feet in Dhaka and Tk 33-37 outside Dhaka - to ensure fair prices and avoid the recurrence of last year's situation, when many dumped rawhides underground or threw the same in water bodies failing to get even the buying prices.

Workers busy unloading and carrying rawhide of sacrificial animals to warehouses at Posta in Lalbagh area of Dhaka city for preservation on the day of Eid-ul-Azha — FE photo by Shafiqul Alam

Tipu Sultan, secretary general of Bangladesh Hides and Skin Merchants Association, told the FE that according to their estimation, the number of animals slaughtered this year was less than that of a normal time. So, the rawhide procurement target would not be fulfilled this season.

The number of sacrificial animals was less this year due to the Covid-19 pandemic, causing the supply to fall short by 25-30 per cent compared to the demand.

Mr Sultan also said they watched news reports that people were selling a piece of rawhide at Tk 100-200. He claimed that traders and merchants were buying those at the government-fixed rates or even at higher than those.

After visiting Posta in the capital, the country's largest rawhide trading hub, it was found that seasonal traders kept arriving at the market by rickshaws, vans and trucks since morning, and selling their collected rawhides to merchants.

Traders said they started receiving hides and skin from the Eid-day noon and would send those to the tanneries in Savar soon.

However, a good number of goatskins and cowhide were found dumped on the pavements, the merchants added.

A trader said it was not feasible to process rawhides due to higher cost against marginal return.

"We cannot process goatskins, as it takes higher costs to prepare those before selling to tanners; even if we get the skins free of cost."

A goatskin is more likely to rot soon and it requires higher quantity of salt and other materials, which is not economically viable for us, he added.

Executive council member of Hides and Skin Retail Dealer Merchant Association Md Shamim told the FE that they were buying rawhides at comparatively higher prices than previous year.

"We hope tanners will also give us increased prices accordingly. Otherwise, it will be tough for us to survive."

He also said the number of animals, slaughtered during this Eid-ul-Azha, was slightly lower than previous years due to the ongoing pandemic.

Nihad Sheikh, a seasonal trader, said he bought rawhides at high prices after reading in newspapers that their prices would be good this year.

But, he had to sell goatskin at Tk 20-25 per piece after purchasing those at Tk 30-40.

Zahiruddin Mia, a seasonal trader in Mohammadpur area, said he bought goatskin at Tk 20 per piece and cowhides at Tk 200-300 per piece, and had to sell the goatskins at half the prices later.

Sources outside Dhaka told the FE that rawhides of sacrificial animals were sold at lower prices, although the prices were expected to increase this year.

Mohammad Ali, who slaughtered a cow in Barishal, said he sold its rawhide at a much lower price than he expected.

"We bought the animal at more than Tk 100,000. But a large piece of rawhide fetched us Tk 350 only."

He also said many of his neighbours received much lower prices for cowhides from seasonal traders than he could manage.

"It's pathetic to witness the decline in prices of sacrificial animals' hides and skin every year, as poor people would get some financial support from the trade," he added.

The prices of rawhides during the Eid-ul-Azha had been declining for the last nine years in a row, market insiders said.

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