Bangladeshi tanners have hit back at claims that a significant price drop on sacrificial hides isn’t being passed on to consumers.
"Some media ran news claiming that the rawhide prices hit the lowest in 30 years. This is not true...the tannery owners will purchase the salt-dusted rawhides at the fixed prices," said chairman of Bangladesh Tanners Association (BTA), Shaheen Ahmed at a press conference in the city.
Talking to local media, chairman of Finimax Tannery Mazakat Harun Manik confirmed that tanners will continue to purchase rawhides at rates fixed by the government.
"It's very difficult to ensure the fair prices of rawhides at the local level as many seasonal traders are engaged in the business and purchasing the rawhides defying the fixed rates," he said.
“The country’s leather sector is passing through a transition due to relocation of tanneries and we have been facing a severe crisis of cash as the government provided bank loans to only 42 tanneries,’ Shaheen said. “I will request the government and law enforcement agencies to remain vigilant so that no rawhide is smuggled out of the country.”
‘We made investment here with an aim to establish an environment-friendly industry but our investment turned bad as most of the tanners could not start their operation in the zone for lack of required infrastructure,’ the Shaheen went on.
“We are not getting bank loans for our business as we are yet to get the registration of land in the industrial park and the government is going to increase the land price to meet up the cost of CETP but it would be suicidal for the industry.”
Mazakat Harun, also BTA senior vice chairman, said there is no possibility of smuggling rawhides out of the country this time as in recent years.
"The Border Guard Bangladesh (BGB) or other law enforcement agency couldn't seize any rawhide in the last few years, which is evident that rawhide is not smuggled out of the country now," he said.