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Tanners association expects to receive hides worth Rs6.5 billion
2017/9/5 13:38:53 Source: Author: 点击率:

KARACHI: The tanners industry is expecting to receive Rs6.5 billion worth of hides of sacrificial animals during the three days of Eid-ul-Azha, industry experts said on Monday.

This year the value of hides increased 8.3 percent as compared to the last year’s value of Rs6 billion hides, a senior member of Pakistan Tanners Association (PTA) said. The industry is expecting 7.1 million hides this year as compared to seven million received last year, he added.

Large size of sacrificial animals, including cow, camel, etc, are expected to increase 0.3 million to 2.5 million on this Eid, he said, adding; however, sacrifices of small size animals such as goats, sheep, etc, are expected to fall 0.2 million to 3.8 million from four million last year. On the other hand, the industry is expecting 30,000 sacrifices of camels, which is the same as the last year.

Feroz said fall in international prices of hides, especially in small size animals, would negatively impact the local business and it would be curtailed to Rs6.5 billion. Price of cow hide is estimated to increase Rs300 from Rs1,600 to Rs1,900. The goat skin fell to Rs150 from Rs250. Similarly, the price of sheep skin has declined Rs75 to Rs100.

Feroz said that the recession in the international markets and depreciation of their currencies has reduced the leather exports from Pakistan, which is the primary factor for ease in prices of hides and skins.

To some estimates the activities of sacrifices on Eid-ul-Azha generated Rs150 billion through the sale of animals, hides and skins, and allied industries. The leather industry is high value-added and foreign exchange earnings segment of the economy. “Presently, the leather industry is facing an uncertain situation due to lower demand from its major exports market for value-added leather products, lower prices of some hides and skins, which cause decline in exports of leather and leather products during the last fiscal year,” Feroz added.

The exports of leather goods fell 6.5 percent to $492 million during 2016/17 as compared to $526.18 million during the preceding fiscal year. The major component in this segment, ie, the exports of leather garments declined nine percent to $291.8 million during 2016/17 as compared to $320.5 million.

Besides, fall in prices in the international market, Feroz also attributed energy crisis, the lack of level-playing field, poor infrastructure and taxation issues to fall in exports.

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