Traders fear incurring losses as prices of salt, rawhides surge
Rawhide traders in Lalbagh, the capital's trading hub, are apprehensive about facing losses this year due to the increase in the prices of rawhides and salt, a crucial ingredient for rawhide processing.
Sajjad Hossain, a rawhide merchant in Lalbagh, informed The Business Standard that the price of salt has risen by Tk300 compared to last year when a sack of salt was Tk1000.
He further added that the price of rawhide has also increased by Tk100-Tk150 per piece this year, with good quality leather now costing between Tk900-Tk1100 per piece.
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Besides, there is an additional cost of Tk400, including the price of salt. However, when selling the rawhides to tannery owners, they can fetch a maximum of Tk1400 per skin. This year, we anticipate incurring losses.
Md Pavel, another trader from Lalbagh, stated, "We are purchasing rawhides at the government-fixed price, and the sale should be conducted at the same rate. However, other costs, including the price of salt, have risen significantly. We may not be able to afford these expenses this time."
On the occasion of Eid-ul-Adha, the government has already set new prices for sacrificial animal rawhides. The price of salted cowhide is now fixed at Tk50 to Tk55 per square foot in Dhaka and Tk45 to Tk48 outside Dhaka.
Seasonal rawhide sellers have expressed slight satisfaction with the price increase.
Md Atiqul Islam mentioned that the price of each leather has risen by Tk50 to Tk800, compared to Tk750 last year. He also stated, "I will be selling 2200 rawhides this year, whereas I sold 2000 last year."
However, seasonal traders who purchased from consumers and sold to ScienceLab expressed dissatisfaction with the prices.
Fazlu Mia stated that the price of good quality leather in ScienceLab stands at Tk700, while medium quality leather does not exceed Tk500-Tk600. We incurred losses from our sales.
In response, Babul Mia, a merchant in Lalbagh, explained that those who buy leather from ScienceLab resell it to us, generating a profit in the process. This is why the leather prices there are slightly lower than those in the local market.
