KARACHI: The price of hides has dropped by an average 10 per cent, but the slaughtering of animals (cows, buffalo, sheep, goats, camels etc) increased by 5-10pc this Eidul Azha, compared to 7.5 million animals sacrificed last year.

The price of cow hide, which was Rs1,700-1,900 last year, now hovers around Rs1,400-1,600 while buffalo hide costs between Rs500-700 as against Rs700-900 last year. Goat skin price ranges between Rs200-225 versus Rs225-250 the year before while sheep skin rate has dropped from Rs125-150 to Rs75-100.

“The total value of hides and skins this year is estimated at Rs5.5 billion - more or less unchanged from 2017, depending on the volume of sacrificial animals, their weight and skin prices,” Pakistan Tanners Association (PTA) Central Chairman Amanullah Aftab told Dawn on Friday.

He said a 5-10pc volume increase in sacrificial animals all over the country is based on the arrival of hides and skins at the tanneries during the first two days of Eidul Azha, while the third day figures are still being counted.

Non-professional butchers have destroyed the hides and skins by putting extra cuts on the skins. These seasonal butchers are higher in numbers in Karachi than any other parts of the country. For the last three years, Eid has also been falling during the summers, which also affects the quality of skin in case salt is not applied on time.

“The overall damage and waste of hides and skins in the country stands at 10-20 pc of the total collection and needs to be controlled,” Amanullah said.

Tanners lift hides and skins from religious institutions, mosques and welfare organisations through auction process.

Explaining this year’s shortage of animals at the main Maweshi Mandi Super Highway, he said the cattle traders from Punjab did not arrive in large numbers due to fear of rains which had caused huge losses the year before. As a result, most of the animals were sold out, creating problems for the latecomers. He said the cattle traders had diverted their animals to different parts of the country and most of the animals in Karachi came from interior Sindh.

PTA chief said the exports of leather goods are facing stiff competition in the world market owing to high cost of doing business in Pakistan which includes soaring electricity and gas charges, unnecessary taxes/hurdles on export and imports, substantial pending claims for duty drawback, sales tax refund, income tax refund and DLTL claims.

These receivables, valuing in millions of rupees, are stuck at State Bank of Pakistan - in particular the DLTL claims of 2.5pc effective from July 2017, irrespective of the 10pc incremental exports.

Published in Dawn, August 25th, 2018