The government has set the price of cow hide at Tk 45-50 per square foot in Dhaka and Tk 35-40 in the rest of the county this year, lowering the price from previous year.
The price of goat hide has been set at Tk 18-20 in Dhaka and for 'Baqra' goats at Tk 13-15.
Commerce Minister Tofael Ahmed announced the revised prices at his offices on Thursday (Aug 9) after a meeting with the tanners.
In 2017, the price for cow hide was Tk 50-55 in Dhaka and Tk 40-45 elsewhere.
The price of goat hide was Tk 20-22 per square foot and for 'Baqra goat' Tk 15-17.
Two reasons contributed to lowering prices – international markets see a significant downtrend in demand of raw hides and the Savar tannery industry, outskirt of capital Dhaka is yet to go on full swing operation causing difficulties in hides processing, said Ahmed.
When asked, the minister categorically denied that the government is not held hostage to the tanners. “Lower prices have been set to encourage businesspersons, not indicating to be a hostage.”
Export in various sectors witnessed uptrend this year while the tannery sector saw a 12-percent downtrend, said the commerce minister.
The tanners, however, are yet to set their target on the purchase of raw hides this year.
Bangladesh Tanners' Association (BTA) Chairman Shaheen Ahmed said, “Forty percent of last year’s hides is still in stoke with its quality becomes sub-standard”
Uncertainly still looms over the banks’ new loan to the tanners as they failed to clear those.