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According to a report in The Daily Star in Bangladesh, tanners have cut the minimum purchase prices of raw hides and skins in the led up to Eid. They claim the cut is due to a lack of demand from international buyers, a weakening dollar and large stocks from the previous year.
The tanners say that they will buy cow hides this season at Tk 70-75 per square foot (US$0.90-0.96) in the capital Dhaka and Tk 60-65 (US$0.77-0.83) elsewhere the country.
M Abu Taher, President of Bangladesh Finished Leather and Footwear Exporters Association, announced the rates at a press conference in the capital last week. Leaders of Bangladesh Tanners Association (BTA) and the Bangladesh Hide and Skin Merchants Association (BHSMA) were present at the press conference.
Tanners last year bought salted cow hides at Tk 85-95 ($1.09-1.23) per sq ft in Dhaka city and Tk 75-80 ($0.96-1.03) elsewhere.
This year, the price of goat hide has been set at Tk 30-35 ($0.39-0.45) per sq ft in the capital and that of Baqra at Tk 25-30 ($0.32-0.39), while buffalo hides are to be sold at Tk 35-40 ($0.45-0.51).
Tanners last year spent Tk 50-55 ($0.64–0.71) for per sq ft for goat skins, Tk 40-45 ($0.51-0.58) for Baqra and Tk 40-45 ($0.51-0.58) for buffalo hides.
Abu Taher said the major international brands are not interested in importing Bangladeshi leather as it is processed without considering environmental concerns. Many tanners are in the process of relocating to a new tannery complex in Savar.