Ulaanbaatar
Government decides to rescind regulation to promote herders
PoliticsUlaanbaatar /MONTSAME/ The cabinet, atits regular meeting on September 14, decided to cancel the Regulation on Hide and Leader Production and Sales, for the period between October 1 of 2016 and August 1 of 2017. Specialists have calculated that this might allow the herders to improve their income, as the leather and hide exports will spike.
Since the adoption of the Regulation in 2013, Mongolia stopped exporting unprocessed sheep hides. As of September 14, a sheep hide costs MNT 500, a goat hide—MNT 2,000 and a horse hide – MNT 30,000. The regulation aims at encouraging the national tannery through imposing strict standards on export-oriented hide and leather.
However, it has resulted in plummeting price of raw hide. The national consumers' demand is met only by 40% of all raw hides produced.
