— Price of skins decreased by 30% due to low demand in international market
With the conclusion of the three-day religious ritual, Eidul Azha, on Monday, tanners expect collection of around 7 million hides (skin) of sacrificial animals in this Eid season.
However, according to market sources, the price of hides this year remains 30 per cent less as compared to the prices recorded in previous years for economic recession in international leather market, adversely affecting the buying of hides in peak season of Qurbani.
Talking to Pakistan Today, prominent business leader and former Pakistan Tanners Association (PTA) chairman Gulzar Feroz said that there was slight increase in slaughtering of cows, bulls and buffaloes but reduction in number goat slaughtered this season.
“Though the number of participants in the religious ritual of Qurbani, an economic activity of over Rs 160 billion in Pakistan, increased as per the increase in population, but that was not translated in total number of sacrificial animals since a large number of people are preferring to get a share in cows due to high price of goat,” he said.
He added that the number cows slaughtered this Eid season was expected to be 2.3 million to 2.5 million. On the other hand, the number of goats slaughtered during the past three days was projected to be 3.7 million to 3.8 million as compared to over 4 million recorded during last Eid season. Collection of sheep skin was expected to be around 0.8 million this season making the total number of hides around 7 million.
“Apart from the number of collection of hides, the sharp decline in price of hides affected the overall business of leather sector as the demand for raw hides has decreased especially after Argentina, being the largest exporting country of leather products, lifted the ban on export of raw hides,” Feroz claimed.
According to Feroz, last year, the total estimated value of sacrificial animals’ hides was Rs 6 billion to Rs 7 billion, but this year it was projected to be only Rs 5 billion to 5.5 billion. “However, unlike last year when the maximum price of cow/buffalo hides was Rs 2,000 each, this year it may range between Rs 1,500-1,700 per hide,” he added.
“Similarly, the price of goat hide is expected to hover between Rs 150-200 per skin this year as compared to Rs 175-225. Sheep skin price may range between Rs 90-150 per skin this year as compared to Rs 150-175 per skin last year. He said that due to poor purchasing and improper curing, a large number of hides and skins get damaged every year,” he said.
Replying to a query, he said that the exporters and businessmen in leather sector pay at least 30 per cent higher price to hides being collected during EidUl Azha for better quality of hides of sacrificial animals. “Eid provides at least 30 per cent of annual production of raw hides in the country,” he said. He rejected the reports that a cartel keeps the price low in Eid season.
Pakistan is one of the biggest markets of the raw hides in Asia and about 30-40 per cent of the total produce is generated only on the occasion of Eidul Azha. Hides are generally damaged due to hiring of unprofessional butchers. Moreover, a lot of hides are wasted due to lack of appropriate knowledge about their preservation.
Around Rs160 billion are generated on Eid days, including Rs150 billion through animal sales and Rs6.5 billion through purchases of hides and Rs2 billion through allied industries. Hides are basic raw material for leather industry to make garments, bags, footwear, ballets and gloves. All these goods are exported that generate substantial amount of foreign exchange.
Sacrificing cows appears to be more popular in the country, while goats are preferred in other parts of the country. According to Pakistan Economic Survey 2016-17, cattle production rose to 44.4 million in 2016-17 from 42.8m in 2015-16 and 41.2 million in 2014-15, followed by 37.7 million buffalo production in 2016-17 as compared to 36.6 million in 2015-16 and 35.6 million in 2014-15.
