‘High inflation to impact this year’s rawhide collection’

Inflation staying persistently high at over 9 percent for the past two years will lead to a lower number of animals being slaughtered this Eid-ul-Azha, the peak season for collecting rawhides, according to Bangladesh Tanners Association (BTA). 

Given the scenario, traders have lowered their target for rawhide purchase.

The BTA has set a target to procure 80 lakh pieces of rawhide this year, 10 lakh lower than that in the year prior, said Shaheen Ahamed, chairman of the association.

"Due to high inflation, the number of sacrificial animals will be 15 to 20 percent lower than during the last Eid-ul-Azha," Ahamed said in an interview with The Daily Star.

"Animal prices are also high. Because common people do not have as much money this year, a target to collect 80 lakh pieces of rawhides has been set," he said.

The modest target was set despite a record number of sacrificial animals being put up for sale this Eid-ul-Azha due to a surplus in supply as many were left unsold during last year's Eid, he said.

There were over 1.25 crore sacrificial animals in 2023, but the number has crossed 1.29 crore this year, as per data from the Department of Livestock Services.

Ahamed added that sales of leather products had decreased considerably in the local market due to high inflation. The same applied to the international market, he said.

"These are fashionable products. Given the situation, people will buy fashionable products only after buying essential products. That's normal. Because of this, both buyers and traders are in a tight situation," he said.

The economic situation of countries which collect leather from Bangladesh is also not good. They are also going through high inflationary pressure and various economic crises. So, they have reduced order quantities, he said.

Due to these reasons, the target of rawhide collection has been reduced this year, he added.

During the July-May period of the current fiscal year, exports of leather goods totalled $961 million, marking a decline of 14.17 percent compared to the corresponding period in the previous fiscal year.

On June 3, the government set the price of salt-cured cowhides at Tk 55-60 per square foot (sqft) in the capital and Tk 50-55 per sqft outside the capital.

Last year, the price was Tk 50-55 per sqft in Dhaka and Tk 47-52 per sqft outside the capital.

"Even three to four years ago, we did not buy so many rawhides. But it was found that middlemen make profits of over Tk 300 per piece, which affects the market," Ahamed said, adding that tannery owners were interested in buying rawhides in order to keep the market stable.

"We now directly contact madrasas and orphanages in advance. Later we give them the price of the rawhides according to the market price," he said.

Tanners will get about Tk 270 crore in loans from banks to procure and preserve rawhides during the upcoming Eid-ul-Adha.

Last year, traders sought loans of around Tk 500 crore but received Tk 259 crore.