PESHAWAR: Sharp decline in the prices of animal hides during and after Eidul Azha has been creating a disturbing situation for both the traders and butchers, who claim to have suffered big financial losses as the buyers at national level are avoiding purchase of the animal skins.

During interactions with some traders and butchers here on Sunday it was learnt that a steep decline in prices of the animals, especially during Eidul Azha, had been recorded which had forced the buyers to avoid purchase of the skins.

Butchers said that in the past they would sell hide of a buffalo at least at Rs4,000, that of a goat up to Rs400 and ram/sheep skin at Rs450, but this year they suffered almost 50 per cent loss on all such hides.

An old trader, Zabit Khan, told Dawn at Namak Mandi that he had never witnessed such a slump in prices of hides and thus it caused huge financial losses to the businessmen and butchers.

He said that all those dealing in this business had kept in mind the last year’s high rates and paid to small scale traders for collecting as much hides as they could to earn much more during the season.

Lack of interest by tanners in Lahore and Karachi seen as the reason

He said that the main cause of the fall in prices was lack of interest on the part of tanners in Lahore and Karachi. He said that it was the government’s responsibility to focus on the export of goods to different countries which did not pay attention to this important revenue generating source.

The trader said that price of buffalo hide in Peshawar market had fallen from Rs4,500 to Rs2,000, of sheep/ram from Rs450/ 500 to Rs150, and that of goat from Rs350/400 to Rs150.

He said that in past the traders would buy per foot of the hide at Rs120, but this year the rate declined to Rs45 only.

Another trader Asghar Khan said that the commerce ministry was unable to make a niche for the Pakistani goods in the foreign markets.

He claimed that keeping in view the decline in prices of leather in international markets the Indian government in consultation with the business community had shown flexibility to clear the exports, but here the government failed to do lobbying for the purpose.

The trader claimed before this government the local economy was in a better position. He opposed withholding tax on banking transactions, saying that the traders avoided dealing with banks now.

“If the government did not withdraw the tax it will force the business community to avoid even visiting banks and as a result it will affect the business and businesspersons,” he feared.

Some butchers, including Malang Jan and Ayub Khan, said that prices of sacrificial animals were high, but prices of skins/hides fell to a record low, which had been causing them huge financial losses. “I slaughter at least four big and small animals daily and have to suffer a loss of at least Rs4,000. In the prevailing situation, the butchers have to raise the meat price to cover the losses,” he said.

Another butcher pointed out that every worker associated with the business of hides had the opportunity to earn at least Rs5,000 a month from the sale of fates retrieved from animals’ intestines, but the business had now been banned by the district administration, Peshawar.

Published in Dawn, October 5th, 2015

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