Chattogram rawhide traders place 7-point demand to save leather industry

Ahead of the upcoming Eid al-Adha, the Greater Chattogram Rawhide Traders Cooperative Society Limited has placed a seven-point demand before the government, urging immediate measures to protect the country's struggling leather industry.

The demands were raised at a press conference held today (9 May) at the association's office in Aturar Depot in Chattogram.

Leaders of the organisation said the rawhide business in Chattogram is on the verge of collapse due to years of distrust between traders and tannery owners, failure to ensure government-fixed prices, unpaid dues and mounting financial losses.

Mohammad Yunus, general secretary of the association, said the number of rawhide traders in Chattogram has fallen drastically over the past few years due to recurring losses and erosion of capital. He said that while around 140 to 150 traders were once involved in collecting and preserving rawhides in the port city, only 30 to 40 now remain active in the business.

He added that many of the association's 112 members have already been forced to leave the business.

Association President Md Muslim Uddin alleged that although the Ministry of Commerce fixes prices for salted rawhide every year before Eid, tannery owners later purchase hides at prices 30 to 40 percent lower than the announced rates.

"Prices declared by the government before Eid are not reflected in the actual market after the festival. As a result, traders are compelled to sell rawhides at a loss," he said.

The leaders also claimed that many traders who borrowed money to purchase rawhide in previous years later became bankrupt after failing to recover payments from tannery owners. According to the association, nearly Tk20 crore in dues from 2016 to 2019 still remains unpaid by various tannery owners.

They said Chattogram remains one of the country's largest markets for salted rawhide during the Eid season, handling around 350,000 to 400,000 pieces of hide every year. However, due to the lack of adequate local tanneries, most hides have to be transported to Dhaka.

The traders said they face severe difficulties after Eid as major buyers from Dhaka often do not travel to Chattogram to purchase hides.

Among their key demands, the traders called for the reopening of all closed tanneries in the country, including Madina Tannery in Chattogram. They also urged the government to help more local tanneries obtain Leather Working Group (LWG) certification to improve Bangladesh's competitiveness in the international market.

According to the association, only five tanneries in the country currently hold LWG certification.

The traders further said diseases affecting cattle, including lumpy skin disease, anthrax and pox-related infections, are damaging a significant portion of hides and reducing their quality, causing further losses to the industry.

They called on the Ministry of Fisheries and Livestock to strengthen vaccination and treatment programmes to prevent such diseases.

The association also demanded the formation of a monitoring cell comprising representatives from the government, the Ministry of Commerce and tannery owners to jointly determine rawhide prices and ensure the effective implementation of those rates after Eid.

Urging the public to play a role in preserving hide quality, the traders advised people to apply salt to hides immediately after sacrifice and sell them only to authorised traders or warehouses.

Speakers at the press conference said the country's leather sector could regain its position and contribute significantly to the national economy if proper planning, policy support and effective market management are ensured.