Hide, skin prices plunge in absence of technology

Heavy showers, lack of storage capacity also cause price fall


Usman Hanif August 16, 2019
PHOTO: ONLINE

KARACHI: Heavy rainfall across the country in the current monsoon season and a lack of storage capacity have caused a sharp drop in animal hide and skin prices on Eidul Azha for the first time in Pakistan’s history.

As rains continue to lash different parts of Pakistan, the hide collectors have inadequate storage capacity, technology and skills that can be used to save hides and skins from damage.

Abdullah Nizami, who has been gathering hides and skins of sacrificial animals for the past 25 years for a seminary in Paposh Nagar, recalls that he had sold hides for up to Rs4,100 per piece about 15 years ago. “However, since then, the prices have been going down, but this time they have slumped to sharply lower levels,” he said.

“That’s why we have lost interest. People were calling and asking us to lift the collected hides and skins but we were reluctant as they were of no or little value,” said Nizami. “If a person goes to collect an animal’s hide or skin from Surjani Town navigating through dilapidated roads, he will end up spending more on fuel than the price of hide and skin.”

“Cow hide was bought in the range of Rs100 to Rs290 this year whereas goat skin was purchased for Rs50 to Rs100. However, sheep and camel skin and hides could not find any buyers,” revealed Asif Qureshi, a meat merchant who collects hides on the occasion of Eidul Azha every year. “We do not have modern technology and skills to preserve hides and skins due to which we face these kinds of price declines,” remarked Syed Shujaat Ali, Chairman of Pakistan Leather Garments Manufacturers and Exporters Association.

Pakistan could not keep pace with the technological advancement adopted and applied around the world to preserve and process leather, which led to a persistent decrease in export of leather products from the country, he said.

Ali pointed out that the world’s leather market had been worth $150 billion but it came down to $120 billion now mainly because China introduced polyurethane garments, which looked like leather garments and were three times cheaper compared to leather products.

Still, he said, Pakistan had a huge opportunity to capitalise on in the global market as the country had a share of less than one billion dollars. However, “the dearth of technology and new skills are major stumbling blocks in the way.”

Ali was of the view that technological changes around the world had pushed down prices of many goods and the same happened with leather products. One other challenge was that most of the time people, who removed the skin of animals after slaughter, damaged it badly.

“When a hide gets one cut, it loses 25% of the price, two cuts reduce the price by 35% and five cuts cause 50% price loss. Now, one can imagine what happens with our leather,” he said.

Published in The Express Tribune, August 16th, 2019.

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