Savar leather estate receives over 2 lakh Eid hides amid price complaints
Officials said the inflow of raw hides was continuing steadily and could rise further into the night, when bulk trading usually takes place
Highlights
- 2,22,233 hides reached Savar leather estate on Eid day
- BSCIC recorded 2,14,313 cow or buffalo hides and 7,920 goat or sheep hides
- A total of 870 trucks transported hides to the estate
- By 4pm, 110 trucks carrying 25,483 hides had entered the estate
- A trader said hides bought at Tk700 were being offered at Tk600
- One tannery plans to buy 20,000 hides and has already received 5,000
More than 2,20,000 sacrificial animal hides reached the leather industrial estate in Savar by 8am today (29 May), on the day of Eid-ul-Adha, as sellers complained of lower-than-expected prices at warehouses.
Of them, 2,14,313 were cow or buffalo hides, while 7,920 were goat or sheep hides, according to the Bangladesh Small and Cottage Industries Corporation (BSCIC).
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Officials said a total of 870 trucks transported the hides to the Savar leather industrial estate and the inflow was continuing steadily and could rise further into the night, when bulk trading usually takes place.
Despite the Eid rush, no visible disorder was seen in the estate's traffic management or hide handling operations until this evening, according to officials and workers on site.
Authorities said the BSCIC, along with the industries and commerce ministries, local administration and law enforcement agencies, were jointly overseeing hide collection, transport and preservation.
Earlier at 4pm, Md Mehrajul Maiyan, executive engineer at the BSCIC office in the leather industrial estate, told The Business Standard that more than 2,22,233 raw hides had entered the estate.
"The volume will continue to increase with time. We are coordinating with all relevant agencies and have deployed additional volunteers to maintain overall management," he said.
Workers stationed at the estate gate said the first truck carrying hides entered the estate around 12:30pm. By 4pm, a total of 110 trucks carrying 25,483 hides had entered the estate.
Most of the hides arriving during the day were blood-soaked raw hides. Workers at warehouses and tanneries were seen applying salt to preserve them after unloading.
While representatives from madrasahs orphanages and seasonal traders bringing hides directly to tanneries reported fewer complaints over prices, sellers at nearby warehouses expressed frustration over the rates being offered.
Traders allege warehouses offering low prices
Several seasonal traders alleged that warehouse operators were offering prices significantly below the government-fixed rates for raw hides.
Many traders said they were instead taking hides directly to tanneries, where they expected better prices.
Paresh, a seasonal trader from Baliarpur who brought 30 hides to a warehouse, said he was being offered Tk600 for hides he had bought at Tk700 each.
"Forget profit, at this rate I will even have to cover transport costs from my own pocket," he said.
Another trader, who brought around 200 hides from a madrasah in Gazipura of Tongi, said warehouse prices were too low.
"That is why we are taking the hides inside the tanneries. Warehouse operators eventually sell to tanneries anyway, so we hope to get a better price there," he said.
However, traders with long-standing ties to certain tanneries said they often leave hides there for salting without negotiating prices immediately. They later settle the rates after discussions with tannery owners.
Azizur Rahman, president of the Hemayetpur Leather Warehouse Owners Association, admitted there was some truth to the complaints.
"The main problem is the cash crunch. A large amount of our money remains stuck with tanneries. We also do not get loan facilities," he told TBS.
"When too many hides arrive at once, buying becomes difficult. Still, we try to follow government-fixed prices as much as possible. But prices also depend on hide size and quality," he added.
Industry insiders said the festive atmosphere once associated with Eid hide trading has faded over recent years due to declining export prices, business losses and dependence on the Chinese market amid the absence of Leather Working Group certification.
Tannery owners said many businesses had already suffered major financial losses, with some turning into loan defaulters.
Md Shahidullah, owner of Azmir Leather, said his factory planned to buy around 20,000 hides this season.
"So far, around 5,000 hides have arrived. Most are coming from our long-term suppliers because we already have more than 50,000 hides in stock," he said.
"If business conditions improve, it will benefit everyone. But many traders have already lost nearly half their capital," he added.
Md Mizanur Rahman, general secretary of the Bangladesh Tanners Association and owner of Samata Leather, said the industry aimed to collect around 10 million sacrificial hides this year.
"So far the market situation is good. The challenge is that bulk trading happens at night. During the day, hides can be inspected properly, but at night that becomes difficult. If prices fall then, disputes may arise," he said.
"Like previous years, most bulk transactions will take place overnight," he added.
