Photo: Collected
Every year during Eid-ul-Azha, the dominance of the leather syndicate becomes evident, and this year was no exception. Representatives from orphanages and madrasas collected skins from sacrificial animals across neighborhoods. Alongside them, some seasonal and permanent skin collectors also bought these skins. However, as in previous years, intermediaries, traders, and warehouse owners were deprived of a fair price for the leather.
Due to the lack of buyers and fair pricing, many skins ended up being dumped in rivers or buried in the ground. Despite being the second-largest sector in Bangladesh's export income, the leather industry is deteriorating due to improper storage and unfair pricing. So, will the leather industry continue to face such challenges year after year?
Despite the government setting the minimum price for salted cow leather at 1,200 taka, leather sellers struggled to receive a fair price. The leather syndicate disregarded the government price, leaving skin collectors in a difficult position. They faced the challenge of buying hides from sacrificial animals and then selling them to traders and tannery owners, many of whom were unwilling to even cover the purchase cost. Intermediaries bought leather from sellers at prices ranging from 400 to 700 taka per piece.
Maulana Mizanur Rahman Kashemi of Jamia Rahmania Qoumi Madrasa in Mohammadpur, Dhaka, shared his experience, stating, "After negotiating with many tanneries, we could only sell cowhide for a maximum of 820 taka per piece, which is significantly lower than the government-fixed price. Last time, we sold this leather for 830 taka per piece. Despite the government's claims of higher prices, this was not implemented. Additionally, buyers showed little interest in purchasing goat skin."
Each goat skin was sold for a maximum of 10 taka. Unable to sell their stock, many individuals resorted to discarding the skins out of frustration, while others buried them. The excessive heat further damaged many skins, exacerbating the situation.
President of the Bangladesh Tanners Association, Shaheen Ahmed, mentioned that 8 lakh pieces of leather were bought on the day of Eid. He stated, "820 taka per piece is not less; it is very expensive because salt, labor wages, and transportation costs will be added to it, aligning it with the price set by the government."
Economic analyst and former caretaker government finance adviser AB Mirza Azizul Islam expressed concerns over the situation. He stated to media, "The proceeds from the sale of sacrificial animal skins are typically spent on orphans. Every year, big syndicates are involved in the leather market during Eid. They conspire to force the sale of sacrificial animal skins at low prices, indirectly cheating the orphans."
Tannery owners have attributed the ongoing challenges in the leather business to the dollar crisis, which has significantly impacted their operations. They argue that purchasing the skins of sacrificial animals at government-fixed prices would result in losses.
Additionally, the formation of the Leather Working Group (LWG), a major global entity that sets minimum environmental and labor standards from the leather procurement stage to finishing, has created further hurdles. These standards ensure that only tanneries capable of producing 'finished' leather to LWG specifications receive certification, and thus attract buyers. As a result, major buyers of Bangladeshi leather are turning away due to the lack of LWG certification.
Environmental pollution is another critical issue deterring foreign buyers from purchasing leather products from Bangladesh. The industry's inability to meet international environmental standards, combined with various internal problems such as relocation issues and financial crises, has led to a kind of collapse in the leather sector.
To save the leather industry, environmentally friendly investment must be increased. There can be no compromise on quality and standards in the leather industry. Bangladesh has great potential in leather and leather goods exports. To sustain Bangladesh's economic progress, extensive initiatives are urgently needed to develop promising sectors. The leather industry is one such promising sector, which can play a significant role in the national economy through effective management and appropriate initiatives.
If the development of the leather industry is hindered, our national economy will suffer. The government must pay close attention to this sector. Long-term effective steps need to be taken to ensure the survival of this export-oriented industry at any cost, and this is our expectation.
Messenger/Fameema
