Ministry aims to control raw materials
20 June 2012Ethiopian authorities are drafting a new regulation to control the raw hide and skins market according to the Ministry of Industry.The new regulation will aim to create harmony between the market chain and the circulation of raw hides and skins to solve challenges created by speculation and consequent increases in price that is affecting the flow between tanneries and suppliers.
The regulation being drafted by the Ministry in collaboration with other stakeholders in the sector such as the Leather Industry Development Institute is expected to be submitted to the House of People’s Representatives by the end of the current financial year.
Regional trade, industry and agricultural offices as well as their federal counterparts will hold a panel discussion on the draft regulation before it is ratified said Wondu Legesse, Director General of the LIDI (Leather Industry Development Institute).
The new regulation will aim to identify suppliers and their collection route according to expert sources. The new regulation may take a few months to be effectively implemented as it will need to be introduced to all stakeholders which have a role in the market chain said Wondu.
It is to be remembered that the Ethiopian government had attempted to implement various efforts to modernise the raw hides and skins collection system in an effort to control the market system but had failed to make much of an impact.
The absence of a modern market system is inhibiting the development of the sector creating unhealthy market competition amongst tanneries due to the gap between demand and supply according to sources.
Source: Capital
