During this year’s Eid al-Adha celebrations on June 17, 2024, an individual in Dhaka purchased a cow for 3 lakhs and 25 thousand taka. Later in the evening, he sold the leather obtained from it for only 400 taka.
If someone wants to purchase a pair of leather shoes, they won’t find any priced below 3,000 taka. Similarly, a leather belt costs no less than 1,500 taka. So, why is the price of raw leather from a cow between 300 and 400 taka?
A member of the Bangladesh Tanners Association (BTA) explains that the cost of transporting cow leather to their facility exceeds 1,500 taka. The expense of the salt required for leather preservation is also notably high. Moreover, a majority of leather goods in the country are imported, resulting in negligible domestic demand. If they purchase leather at higher prices, they will incur losses.
Another member of the BTA highlighted that initiatives and management for the processing, preservation, and export of large quantities of animal leather are virtually absent in Bangladesh. He further noted that if they receive orders for 1 lakh feet of leather from China, the buyer often reduces the order to 50 thousand feet or cancels it, citing various reasons. The buyers also demand various certifications, which are quite cumbersome to obtain.
The government has set the price of cow leather at 55 to 60 taka per square foot in Dhaka and 50 to 55 taka per square foot outside Dhaka. This marks a 5 taka increase compared to the previous year. Additionally, the minimum price for salted leather in Dhaka has been fixed at 1,200 taka and outside Dhaka, it stands at 1,000 taka.
However, in many districts, leather is not being sold at the government-set prices. Businessmen buy raw leather for 300 to 400 taka, depending on the type, while leather from smaller cows is sold for as little as 150 to 200 taka. Goat leather is being sold for only 15 taka in many places where the goat itself is priced at 50 thousand taka. This situation has left many disappointed at the inability to obtain fair prices for animal leather, with some even giving it away for free.
Where is the inconvenience in buying leather at the price set by the government? In response to such questions, the member of the BTA expressed some frustration and said that if they buy leather at this price, they will incur losses. He emphasized that the process of preserving leather alone requires a minimum of seven kilograms of salt, not to mention expenses for labor and transportation. Overall, the cost of acquiring leather for 400 taka escalates to at least 1,500 taka by the time it reaches the tannery. Moreover, there is insufficient demand for leather both domestically and internationally. With most leather products in the country being imported, local leather retailers continue to face pricing challenges.
Edited
