Raw hides flowing into Savar tanneries, price uncertainty looms again

Raw hides from sacrificial animals are being brought into the tanneries of the BSCIC Leather Industrial Estate in Savar from Dhaka and surrounding areas. Permanent and seasonal workers are busy collecting and processing these hides. However, seasonal hide traders have once again alleged that they are receiving prices lower than the rates set by the government.

On May 26, the Ministry of Commerce set the official price for sacrificial hides. The price for salt-applied cowhide was fixed at Tk 60–65 per square foot in Dhaka (up from Tk 55–60 last year), and Tk 55–60 per square foot outside Dhaka (up from Tk 50–55). Additionally, the minimum price for salted cowhide in Dhaka was set at Tk 1,350, and Tk 1,150 outside Dhaka. The price for salted goat hide was set at Tk 22–27, and Tk 20–22 for sheep hide.

Despite the Tk 5 increase per square foot from last year, traders claim they are still unable to sell their hides at the official rates. According to them, tanneries are purchasing each salted cowhide for just Tk 700–900, well below the fixed minimum of Tk 1,350. Left with no choice, traders say they are being forced to sell at these lower prices.

Tannery owners, however, argue that the government-fixed rates apply only to salted hides, whereas most of the hides brought in by traders are unsalted. As a result, the tanneries have to bear the costs of salting and initial processing themselves. From their perspective, no one is actually incurring a loss once this is factored in.

By 2 PM on Saturday (June 7), the collection of raw hides had begun in earnest across the tanneries. After initial trimming, the hides are being salted and stored.

A visit to several tanneries revealed that traders bringing in raw hides were frustrated by the ongoing disregard for government-fixed prices. They said most wholesalers and tannery owners were refusing to buy hides at the official rates.

The BSCIC leather estate is abuzz with activity. Truckloads, pickups, and smaller vehicles are unloading heaps of sacrificial hides. In front of each tannery, workers are busy—some unloading, others salting the hides, while others transport them inside for processing.

Moyazzem Hossain, a trader who brought hides from Dhamrai, said, “The prices are always declared, but never enforced. There’s always some kind of manipulation going on with the hide trade. Since these hides are considered the rights of the poor and orphans, no one really gets strict about it. It looks like we’ll be facing losses again this year.”

Seasonal hide trader Rafique Alam said, “We go from village to village collecting hides. It’s hard work. But once we reach the tannery, we find that the prices are extremely low. We’re forced to sell well below the government-fixed rates. It’s becoming increasingly difficult for small traders like us to survive.”

“We want the government to enforce stricter monitoring so that we can get fair prices,” he added.

Rafique continued, “We buy sacrificial hides with high hopes every year, especially since the government sets prices. But we never get to sell at those prices. Tannery owners dictate whatever price they like. We run our businesses on very thin margins, and when we don’t even get the expected price, we end up losing money. The same thing happened last year. I had hoped things would be better this time, but it’s the same story again.”

Md. Shahidullah, owner of Azmir Leather, said, “Raw hides are arriving without any salt. We are salting them here ourselves, and this will preserve them for about two to two and a half months. We’re buying directly from madrasas, based on prior arrangements. We’ve paid the government-fixed rates for those.”

Md. Sakhawat Ullah, Managing Director of Salma Tannery and Senior Vice President of the Bangladesh Tanners Association (BTA), said, “This year, our target is to collect over half a million hides during Eid day and the day after. Collection began from noon, and we are purchasing hides at the government-fixed rates. We’re hopeful that we will meet our target.”