BOGURA, May 31: Seasonal rawhide traders and wholesalers in Bogura have suffered extreme losses over this year's Eid sacrifice. Many are at risk of losing their capital after selling hides at low prices.
Rawhide traders said that tanneries in Dhaka owe them billions of Taka. With those dues unpaid for a long time, many have had their capital tied up. Added to this are the rising price of salt and the extra cost of preserving hides. Altogether, a major crisis has developed in hide trading.
Seasonal traders claim they bought cowhides from rural areas for Tk 500 to Tk 800, but in town they are being forced to sell them for only Tk 200 to Tk 600 at most. This does not even cover transport and labour costs, let alone make a profit.
They said the situation for goat hides is even worse. In Bogura town's markets, goat hides are selling for just Tk 5 to Tk 20, whereas they had bought them for Tk 30 to Tk 60. As a result, every hide is making a loss.
Seasonal trader Mongla Miah said, "After buying hides at high prices from the villages, I now have to sell them cheap. After paying for transport and labour, nothing is left in hand."
According to buyers, the quality of many hides has been ruined due to lumpy skin disease among livestock. Only good quality hides are being bought at government-fixed prices. Poor quality hides have no demand, so they do not fetch a good price.
Wholesaler Ripon Talukdar said, "Previous payments from tanneries are stuck. Without that money, it is not possible to run the business on a large scale."
Another wholesaler, Jewel Hossain, said, "The price of salt has increased, and preservation costs are high. Due to low demand in the market, many do not want to take risks."
Traders fear that if outstanding payments are not cleared soon and the market stabilised, an even bigger crisis may hit the hide industry in the future.
