Bangladesh government has decided to allow rawhide exports in order to ensure the well-being of leather sector in the country. The decision will be in effect immediately.
Commerce Minister Tipu Munshi said, “The syndication in the rawhide and tannery markets has put the whole industry at risk. We will provide all the necessary assistance to the exporters to control ongoing meltdown of the rawhide industry.”
During the occasion of Eid-ul-Azha this year, prices of collecting rawhide have hit the lowest in recent history causing small traders a huge loss.
The decision came into effect following the observation that rawhide is not being traded as per the government set prices, even though the prices were set after discussing with all the stakeholders. The diversion of the market prices from the set prices has led to the decision.
“In order to ensure the safety of the grassroots level rawhide traders, the decision of export has been taken,” affirmed Tipu.
However, the industry stakeholders are discontent with the government’s decision and demanded its withdrawal. Bangladesh Tannery Association (BTA) claimed that it would affect the local leather industry. Shaheen Ahmed, Chairman of BTA said, “From August 20, we will be collecting raw hides at the price determined by the leather traders.”
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