Raw hide procurement in disarray 

Raw hide trade, following the Eid-ul-Azha, is facing serious disruptions, sending distress signals not only to those directly engaged in the business but also to the leather industry as a whole. Seasonal traders, who collect raw hides from across the country during the Eid season, are finding it increasingly difficult to sell their stocks. The core issue lies in the disconnect among the collectors, wholesale buyers (aratdars), and tannery owners. While seasonal traders accuse aratdars of offering prices far below expectations, the latter complain that tannery owners are unwilling to pay the government-fixed rates. Allegations abound that tanners have, for several years now, maintained a syndicate to artificially suppress prices in order to maximise profits.

This year, prices of cowhides reportedly dropped 30-40 per cent below the government-fixed minimum retail price (MRP). The government had set cowhide prices at Tk 1,350 in the capital and Tk 1,150 outside, or Tk 60-65 per square foot, up from Tk 55-60 the previous year. Tannery owners have set a target of collecting 8.0 to 8.5 million pieces of hides during the current season. However, as regards their reluctance to buy at government-set prices, they argue that in the wake of the continuing slump in international prices and stocks already available with them from last year's collection, they are not prepared to risk purchases at uncompetitive prices. Reports say, so far, collection of raw hides and skins has been far below the expected level. As a result, many seasonal traders, especially in the northern districts, are reportedly stockpiling unsold hides, anticipating better prices. In the case of goatskins, the situation is even worse. Many collectors, unaware of the prevailing market rates, purchased goatskins in bulk only to find that aratdars were offering throwaway prices, rendering their collections almost worthless.

Observers view this scenario as a troubling sign for the country's leather sector, which is already grappling with various challenges. They fear that in the absence of proper preservation, the raw stuff now lying with the traders unsold may get wasted. At the same time, there is the looming threat of large-scale smuggling to neighbouring countries. If the hides are not disposed of locally well within time, then smuggling becomes the only probable outlet. Informed sources say every year business people from across the border pay substantial amounts in advance to local collectors prior to Eid-ul-Azha to make sure that the illicit cross-border operation succeeds, despite 'watchful eyes' of the border forces on both sides.

To prevent such outcomes, the government must act promptly. Law enforcement and relevant agencies should intensify vigilance along border areas. A coordinated effort involving local administration, industry stakeholders, and security forces is essential to stabilise the raw hide market and protect the interests of both traders and the leather industry. Without timely intervention, the fallout could be severe-economically and reputationally-for a sector that holds significant export potential and employment prospects for the country.