Even though the country saw a surplus supply of sacrificial animals this year with its prices significantly higher than past years, the low prices of rawhide frustrated traders.
This year 10,408,918 animals have been sacrificed across the country. Of them, 4,766,859 were cows, 112,918 buffaloes, 5,056,719 goats and 471,149 sheep while 1,273 others were camels and dumbas.
Despite the high prices, 367,106 more animals were sacrificed this year compared to last year. However, cowhide was still sold at prices much lower than those set by the government.
The government had fixed the price of salted cowhide in Dhaka at Tk 55-Tk 60 per square foot, and outside Dhaka, the price was set at Tk 50-Tk 55. Last year this price ranged from Tk 45 to Tk 48.
Seasonal traders, hoping for handsome profits from rawhide sales, collected a significant number of rawhide and brought them to Posta and Lalbagh. However, they received only Tk 20 to Tk 25 per square foot of rawhide.
As a result, seasonal traders from the various regions also bought rawhide at nominal prices as there was no fixed price for these rawhide.
Saiful, a seasonal trader at Posta, expressed his disappointment saying that although the price had increased slightly compared to last year, it was still much lower than their expectations.
After buying rawhide, traders said, each one costs about Tk 290 for adding salt to rawhide for its preservation. On the other hand, calculating all kinds of expenses, including labour cost, shop rent, loading and unloading cost, traders are not able to buy hides at a higher price
Secretary General of Bangladesh Hide and Skin Merchant Association (BHSMA) Haji Tipu Sultan told Bangladesh Post, “Once we bought rawhide for Tk 3,500. We need money to buy rawhide. Hide is a perishable product. If it cannot be collected immediately, it starts rotting. So, if price falls, sellers do not get expected price.”
According to the Tannery Association, the tanneries collect about 10 million to 12 million cowhides every year, of which almost half comes at the time of Eid-ul-Azha. During this time, about 6 million skins are collected. The owners of the tanneries have said that until Wednesday, they bought cowhide at an average price of Tk 800. As per calculation, the price of 6 million rawhide is about Tk 480 crore.
President of Bangladesh Tanners Association Shaheen Ahmed said that bank has provided a loan of Tk 75 crore to Tk 80 crore only against their high demand. In western countries, inflation has affected leather products. Due to this, they are reducing the use of leather products and using cheap artificial products. The price of leather has dropped sharply.
Apart from that tannery factories have compliance issues which has an impact on the leather industry, he added.
In the last four years, the government has increased the price of rawhide continuously. The price increased by Tk 5 per square feet this year as compared to last year. Despite hike for four consecutive years, leather prices are still two-thirds compared to 2012.
At present, the market of leather and leather products combined with the local and export market is about Tk 26,000 crore. Of the total, the local market size is more than Tk 12,000 crore. In the fiscal year 2022-23, exports of leather and leather products fetched $1.22 billion.
Leather was the second export earning sector of the country after the readymade garments. The government is going to form a separate authority to promote this sector. As part of this initiative, the Ministry of Industries released the draft law titled ‘Bangladesh Leather Industry Management Authority Act-2024’ on its website before Eid.
