Dhaka, Bangladesh (BBN)- Local tannery owners, leather goods producers and raw hide traders are seeing gloomy prospects of exports in the current year due to fall in prices of raw hide at the international market in recent months.

The industry’s annual export value is above one billion US dollar, as per the statistics of the Export Promotion Bureau.

The industry insiders say the global raw hide prices fell by 15-25 percent that will impact local procurement during the looming
Eid-ul-Azha, the major festivals for Muslims when animals are being sacrificed; numbering around 10 million by only three days.

Eliasur Rahman, who is vice chairman of Bangladesh Tanners Association and owner of Arab Tannery Pvt Ltd, said that the local price for raw hide generally determined by the international market rates.

He said tanners normally procure hide and skins during the Eid-ul-Azha for entire year.

“Who fails to procure now, he (or she) could not do business,” Rahman said.

Meanwhile, the domestic leather industry is growing on using abandoned production of raw hide and skins in the country. Local traders estimated that Bangladesh produce around 10 million high quality animal hide during the Eid-ul-Azha merely.

According to International Council of Tanners (ICT), Bangladesh’s annual leather production was 148.1 million square feet for last
couple of decades, from 1998 to 2006. Bangladesh ranked 20 out of top 30 leather manufacturing countries in the world as per the ICT list.

However, industry insiders say the domestic use of raw hide and skin is only 40 percent at present while the remaining quantity produced is
being exported every year.

Rahman said Bangladesh produces high quality of raw hide and skins during the Eid-ul-Azha.

“The growth and increase in export of products of local footwear industry is mainly driven by availability of high quality raw hide and
skins,” he said.

He said hide and skins available in entire year, which other than the Eid collection, are not of professional quality.

According to Export Promotion Bureau (EPB), Bangladesh earns $ 1124.17 million from export of leather and leather products in FY 2013-14.

Out of the amount, $ 505.54 million from raw hide and skins (leather), $ 240.09 million from leather products and $ 378.54 million leather
footwear exports, the EPB says.

 

The EPB data shows, raw hide and skins (leather) exports declined by 5.23 percent in FY 14 compared to earnings in FY 13 while income from leather products export increased by 58.03 percent and leather footwear export rose by 18.74 percent.

Meanwhile, global trade in untanned hides and skins has risen 18 percent by volume and 60 percent by value, to be worth $ 4.3 billion
annually. Similarly, trade in leather has increased 140 percent by volume and 240 percent by value, to $ 9.5 billion annually, the ICT
data shows.

BBN/SSR/AD-07Oct14-3:26 pm (BST)