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Middlemen push Eid hide prices low

Star Report
Prices of raw hide in the wholesale markets were lower after the Eid-ul-Azha this year compared to the prices last year, market sources said attributing this to mainly the manipulations by a section of leathertraders.
Middlemen dominated the market this time and kept the prices low in connivance with unscrupulous traders at the biggest wholesale market at Posta in Lalbagh, they mentioned.
Average-size cowhides sold at Tk 1000-1400 this year against Tk 1600-2000 last year and goat skin at Tk 250-350 against Tk300-450.
President of Bangladesh Finished Leather and Leather Goods Exporters Association Rezaul Karim Ansarv however said this time the prices were low in the domestic market because of a dull situation in theinternational market.
"The prices seemed low because the animals were mostly small-sized as there was hardly any Indian cow, normally bigger in size, in the market due to tight control at the borders before the Eid," he said.
He termed the situation normal and hoped export of finished leather and leather goods would not be affected if the market remains under control.
Rezaul said his association did not get any specific information from any part of the country about smuggling of rawleather to neighbouring countries.
The association at a meeting yesterday reviewed the market situation and felt that the supply of raw leather after the Eid was normal.
" One-day traders, who are not related toleather business might suffer due to the price fall but the genuine leather traders would not be affected," an association leader said.
Last year, Bangladesh earned over Tk 1,500 crore from exports of finished leather and leather goods. More than
50 per cent of raw leather is collected after the Eid-ul-Azha.
Meanwhile, many local hoodlums and mastaans with political backing collected hides and skins of sacrificial animals and sold them to middlemen at low prices. Political workers, student leaders and small traders also took partin such activities.
They collected the hides and skins mostly at verylow prices, many traders alleged.
Madrassahs and orphanages, where people donate hides and skins of sacrificial animals, suffered due to thelow prices.
Some sources said quality hides and skins were smuggled to India from bordering districts for higher prices.
More than 20 lakh pieces of hides and skins are available after the Eid-ul-Azha, the major source of supply to local tanneries.
Commercial banks distributed Tk 200 crore among tannery owners before the Eid but they are yet to start buying rawleathers from the traders.