Bangladesh: the government fixes the price of raw material (-30%)

Bangladesh: the government fixes the price of raw material (-30%)

The price of raw material has gone down by 30% from last year. Bangladesh’s government decided, on Sunday 26th, has fixed the price of raw material obtained during its “Sacrificing Feast” (July 30th – August 3rd). Good news for tanners, as they wouldn’t have otherwise been able to buy it due to the serious financial issues they find themselves in.

Price of raw material

The Ministry of Commerce, Tipu Munshi, announced during a virtual meeting with sector operators, that the segment of tanning raw material from bovines will be sold between 35 and 40 Taka (between 0.36 and 0.41 euro). The price last year was of between 45 and 50 Taka (0.46 and 0.51 euro), equal to a reduction of about 30%. Raw material from goats will cost 20% less.

Satisfied tanners

Government intervention had been requested by tanners. The segment is in difficulty due to the reduced number of orders caused by Covid-19, as well as by the loan payments. The material acquired after the aforementioned event, accounts for about 50% of all hides tanned during a full year. Segment operators have expressed their satisfaction for the government’s decision.

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