Government says 10,000 rawhides destroyed after Eid, crisis is over ‘for now’

The government believes the crisis over rawhide has ended ‘for now’ following the decision of the merchants to resume sales to tanners.

Citing traders, the government also says 10,000 rawhides have been destroyed ‘mainly due to weather’ after Eid-ul-Azha this year.

Seasonal traders left on streets or buried unsold rawhide of cattle slaughtered on Eid last Monday as the merchants offered very low prices or refused to buy citing a lack of funds due to unpaid bills from tanners.

A city corporation official in Chattogram said they removed around 100,000 rawhides from the streets. Similar reports came from Dinajpur, the rawhide trade hub of the north. 

Many fear the crisis led rawhide worth Tk 3 billion to rot.

Seasonal traders in Chattogram left on streets unsold rawhide of around 100,000 cattle on Eid day following a steep price fall, according to an official. Photo: Sumon Babu

On Saturday, the merchants’ decision to stop sales to the tanners until the dues are paid added a new twist to the crisis when the tanners were preparing to start buying rawhides from the merchants following their promise to the government.

On Sunday, the commerce ministry organised a meeting of the stakeholders of the leather industry, to resolve the crisis.

As many as 5,000 rawhides are destroyed during Eid every year, Industries Minister Nurul Majid Mahmud Humayun said after the meeting, citing merchants.

“The traders gave us district-wise accounts and they took responsibility for the counts. Some 10,000 rawhides might have rotten due to the weather,” he said.

Prime Minister’s Advisor for Private Industry and Investment Salman F Rahman said 10 million rawhides are produced during Eid.

“They (traders) have said that 10,000 rawhides have been destroyed while normally the number stands at 5,000. The main reason is hot weather. The number is higher in Chattogram and Sylhet than in Dhaka,” he said.

Asked about reports that 30 trucks rawhides had to be dumped, Industries Minister Humayun blamed the opposition BNP for the destruction.

“The BNP bought the rawhides and dumped these,” he said, declining to explain further.

“I think a ring is working to stop the leather industry advancing,” the minister said.

The merchants said they would resume sales to tanners while the unpaid bill issue would be resolved in a meeting on Aug 22 with the apex trade body FBCCI as the mediator.

Minister Humayun said: “There is no problem in the leather industry for now. They will start sale today. The other problems will be resolved on the 22nd.”

The government lifted the bar on rawhide export to stop the steep fall in prices after the Eid, but many things remained unclear such as how the move will affect domestic industries or benefit general people and seasonal traders.

“The government will take a decision on export as the situation demands,” the industries minister said.