The decision to lower prices for rawhides and skins of sacrificial animals ahead of Eid-ul-Azha was not wrong, Commerce Minister Tofail Ahmed has said.
The minister identified three factors for the dull business of rawhides this year.
“The rawhides remained unsold not because the prices were cut, but for three reasons. First, the rawhides collected last year still remained unsold. Second, tanners say they could not secure bank loans in time and third, factories are yet to start their operations in Savar.”
However, Ahmed said, “The traders say that everything will be on track. The price we reduced was proper.”
On Aug 9, the government set prices for rawhides and skins of sacrificial animals ahead of Eid-ul-Azha.
Tanners had to buy cowhide at Tk 45-50 per square foot in Dhaka and at Tk 35-40 per sq ft outside Dhaka.
The prices of goat hide have been set at Tk 18-20 per sq ft and Tk 13-15 per sq ft for ‘Baqra’ goat hides across Bangladesh.
Last year, the prices of cowhide were set at Tk 50-55 per sq ft in Dhaka and Tk 40-45 per sq ft outside Dhaka. Goat hide had been set at Tk 20-22 per sq ft and ‘Baqra’ hide at Tk 15-17.
On Aug 24, seasonal rawhide traders claimed to have suffered massive losses during the Eid-ul-Azha in Dhaka this year.
The wholesalers cited a ‘misunderstanding’ on the government-fixed rates as the reason behind the loss.
After failing to get fair prices of rawhide bought from people who slaughtered cattle on the Eid day on Aug 22, many of the seasonal traders stopped buying when some slaughtered cattle on Aug 23.