Rawhide businesses worry as salt price rises by Tk450 in a year

Rawhide traders and processors are worried as the price of salt, the key raw material of the industry, hiked abnormally by Tk450 per sack in a span of a year, despite its record production.

They feared that there would be trouble in rawhide processing because of the abnormal price hikes of salt ahead of Eid-ul-Azha, the peak season of the rawhide business, and the rise of other costs, including labour wage, and transportation.

Crude salt was being sold at Tk450-570 at the farmer level. It is now sold at Tk1,150-1,250 per sack at Chattogram's Majhir Haat, the country's main wholesale salt haat. A week ago, it was sold at Tk1100.

The price of crude salt was Tk800 per sack before last year's Eid-ul-Azha.  

The salt price hike might have an adverse impact on the large-scale rawhide process and preservation during Eid, traders have said.

According to Bangladesh Small and Cottage Industries Corporation (Bscic), demand for salt in the leather industry alone is 3.41 lakh tonnes this fiscal year, while demand may exceed 4.45 lakh tonnes in the next fiscal year.

Rawhide traders said some 8-10 kg of salt is needed to process a single rawhide. The processing cost of rawhide, including the wage of labourers, and transportation earlier was just Tk180-200, which will be Tk250-300 this year thanks to spiralling salt prices and other costs.

Moslem Uddin, president of the Greater Chittagong Rawhide Dealers Association, said "The rawhide collectors have been suffering losses for the past few years due to the increase in transport costs and labour wages and non-payment of previous dues. Now, increased salt prices and the rise of other costs will create extra pressure on us."

 He urged the government to take measures to reduce the price of salt.

Asad Asif, the proprietor of M/s Lal Mia Salt Industries of Chaktai, said "There are errors in the calculation of Bscic as the said amount of salt is not available in the Chattogram mills. Farmers also say they do not have salt. Where did so much salt go? Bscic does not give us a satisfactory answer to this question."

In fiscal year22-23, the country produced a record 23 lakh tonnes of salt, according to the Bscic, whereas demand for salt was 24 lakh tonnes. Earlier, salt production was 18.30 lakh tonnes in 2021-22 and 18.16 lakh tonnes in 2020-21.

Mozammel Haque, survey and information officer of the Bscic Chattogram office, said there will be no shortage of salt due to record production.

However, in response to a query about why the salt price has increased, the official could not give any satisfactory answer.

Mokhlesur Rahman, director of RIFF Leather, urged the organisations concerned, including the Industries Ministry, to take effective initiatives in order to save the industry in these difficult times for the leather industry.