Leather prices collapse as market demand plummets below procurement costs
Photo Collected
Seasonal hide traders in the Bangladeshi port city of Chattogram are facing significant financial uncertainty this Eid-ul-Adha, as a mismatch between procurement costs and market prices threatens to inflict heavy losses on small-scale operators. While the government has set official price benchmarks for raw hides, traders operating in the city’s bustling Choumuhoni area report that these figures are rarely reflected in street-level transactions.
According to reports from local traders, the disparity is stark. Seasonal merchant Mohammad Didar, who spent roughly 18,000 taka to procure and transport 40 cattle hides, found himself unable to fetch even his cost price at the wholesale market, with buyers offering as little as 150 taka per piece. The experience is common among small-scale vendors who travel through neighborhoods and mosques to collect skins, only to find the wholesale market volatile and suppressed.
বিজ্ঞাপন
To mitigate risks following major losses in previous years, many traders have adopted a cautious approach. Mohammad Rubel, a fishmonger who ventured into the hide trade, noted that he limited his inventory to 300 pieces this year, purchasing them at a lower price point of 250 to 300 taka each in hopes of breaking even. Similarly, Mohammad Azizur Rahman, who managed to collect 250 hides, opted for a swift sale at a marginal profit of 50 taka per piece to avoid the risks associated with holding stock.
The Choumuhoni area served as the primary hub for these transactions, where vats and pick-up trucks converged to transport hides to the major tanneries in the Aturar Depot district. Despite the tension, there were no reported incidents of traders abandoning their stock on the streets this year—a stark contrast to the previous season when financial despair led some to discard hides entirely.
বিজ্ঞাপন
Market observers note that while the government set the price for salted cattle hide at 57 to 62 taka per square foot outside of Dhaka, these regulated prices remain largely theoretical in the open market. The Chattogram Greater Raw Hide Wholesalers Cooperative Association, which oversees the collection of roughly 400,000 hides across the district, maintains that current market prices are fluctuating between 200 and 600 taka per piece depending on quality.
Association President Mohammad Muslim Uddin noted that while the trade remains fraught with volatility, the current season appears slightly more stable than the previous year. As the day progressed, seasoned traders continued to monitor the market with guarded optimism, prioritizing quick turnovers to minimize exposure to the inherent risks of the hide industry.
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