Salt Crisis Worries Traders Ahead of Eid Rawhide Processing

With Eid-ul-Azha approaching, traders at Chakbaidyanath Mukam, the country’s second-largest rawhide market, have completed their preparations.

But, a sudden rise in salt prices and the spread of a bovine virus among cattle have left them deeply concerned.

Due to the virus, salted rawhides are now being sold by weight, with traders suspecting the issue stems from the side effects of overfeeding in cattle farms.

Meanwhile, the Ministry of Commerce has announced that salt imports will not be necessary this year due to sufficient domestic production.

Taking advantage of the situation, traders have increased the price of unrefined salt by Tk 5 per kilogram, directly affecting the leather industry.

Earlier, salt was priced at Tk 10 per kilogram, but it has now risen to Tk 15, a significant hike that has alarmed rawhide traders.

Rokib Uddin Kamal, a trader, said last week the price of a 70kg bag of salt was Tk 700.

Now, it stands at Tk 1,050 – indicating a Tk 5 increase per kilogram.

He said this rise in salt prices will raise the cost of rawhide processing, while the price of unsalted rawhide at the retail level may fall due to reduced profit margins.

Adding to the pressure, the bovine virus is damaging the quality of hides, even after salting.

These infected hides are being sold for only Tk 10 to Tk 15 per kilogram and finding buyers has become difficult.

Nurul Islam, a leather trader at the Natore market, said that excessive feeding in farms has caused cattle to develop skin infections and symptoms of lumpy skin disease.

“These rawhides lose their quality after salting,” he said.

Nurul expressed concern that seasonal traders, many of whom are inexperienced in identifying quality hides, may suffer major losses during Eid-ul-Adha.

He shared an example from his experience said, “A seasonal trader might buy a virus-infected rawhide for Tk 700, but the wholesale dealer will offer no more than Tk 50 to Tk 100 extra. The blame will then fall on both the trader and the dealer.”

Following the political transition in the country on 5 August last year, this major rawhide market has largely freed itself from political interference.

But, Abdul Halim, President of the Leather Traders’ Group of Natore-2, warned that if salt prices are not brought under control, traders may become discouraged, paving the way for leather smuggling.

although trade occurs year-round in this market, the primary focus is during Eid-ul-Azha, when nearly half of the country’s rawhide supply is collected, he said.

Halim urged the government to take urgent measures to stabilise salt prices amid the current global economic conditions.

When traders are forced to reduce leather prices to absorb the rising salt costs, smaller and marginal businesses may be tempted to turn to the Indian border to avoid losses, he added.

China remains the primary market for Bangladeshi leather, while some exports also go to India and Turkey.

Halim called on the government to explore and develop new export markets, reports UNB.