Bangladesh has one of the world’s largest rawhide markets, but every Eid-ul-Azha, rawhide sells at very low prices, hurting sacrificers, small traders, and collectors.
The government recently eased export restrictions on raw and wet blue leather for three months, hoping this will raise local demand and prices. Still, worries remain due to political uncertainty, low investment, heavy monsoon rains, bank loan problems, and high fixed prices. These issues could leave much rawhide unsold again.
The export ban lift helped warehouse traders but upset tannery owners, who fear short-term gains may harm the local industry.
A leather industry leader said the government must rethink exporting raw hides to protect domestic demand and the thousands of crores invested.
Bangladesh used to export wet blue leather until 1990. After a pause, limited exports resumed in 2021, and this year the ban is temporarily lifted for all, allowing raw and wet blue hides to go to markets like China and Vietnam, which have shown interest.
Stakeholders say this Eid has again revealed problems. Monsoon rains threaten hide preservation, political instability scares investors, and banks are cautious about loans. Normally, over a thousand crore taka is invested, but this year many businessmen are hiding or holding back.
Banks allocated Tk 232 crore for rawhide loans this year, down from Tk 270 crore last year. Due to frequent loan defaults, banks are lending less, causing a cash crunch for traders.
The Commerce Ministry is cracking down to stop unethical practices in the rawhide market. Syndicates often exploit Eid, causing big losses. To break their hold and ensure fair prices, direct rawhide exports are allowed for three months. This aims to reduce middlemen’s power and stabilize the industry.
The government warns it will take legal action against those trading outside fixed prices or harming this national asset. District and Upazila officers will monitor markets and enforce rules. To prevent distress sales, 100,000 tonnes of salt will be supplied nationwide, including 30,000 tonnes free for hide preservation. These steps aim for fair prices, transparency, and stability during Eid.
Commerce Adviser Sheikh Bashir Uddin said the government is giving free salt, providing preservation training, and factoring in labor costs in pricing. He called this year’s prices logical and practical.
He also said plans to export rawhide to China and Vietnam aim to keep demand and prices stable.
The government has taken several measures to protect the leather sector and seasonal traders. If well executed, these should prevent the chaos seen in past Eid seasons.
According to the Bangladesh Hide and Skin Merchant Association (BHSMA), sacrificial hides may pass 11.5 million this year, up from 10 million last year. This is a big chance for tanneries, but managing rawhide remains challenging. Tannery owners and traders are preparing while authorities focus on salt supply, transport, and price control. BHSMA hopes government support and good management will boost long-term growth.
BHSMA Secretary General Tipu Sultan told Banglanews, “Lifting the export ban is good, but we lack export capacity and need to build it first. Prices may rise, but many big buyers are hiding due to regime change and won’t buy hides this year. Political instability is hurting investment, and banks have cut loans.”
He added, “Tannery owners dislike the export decision. If they buy less, problems will arise. Though prices rose by Tk 5–7 this year, the rainy season threatens hide preservation. Overall, market concerns remain.”
Former BHSMA President Aftab Khan said allowing raw and wet blue leather exports is positive for fair prices but Bangladesh lacks export capacity and experience, making new markets hard to find.
M A Awal, Vice Chairman of the Bangladesh Finished Leather Exporters Association, called the export decision “suicidal.” He warned it could harm the Tk 10,000 crore industry, increase pollution, cause exporter losses, reduce export income by 30–40%, and lead to mass job losses.
Rawhide prices last rose significantly in 2013 at Tk 85–90 per square foot but have since fallen. This year, prices rose slightly but remain below past highs.
The Commerce Ministry set salted cowhide prices at Tk 1,350 per piece in Dhaka and Tk 1,150 elsewhere. Per square foot, Dhaka prices rose from Tk 55–60 to Tk 60–65; outside Dhaka, from Tk 50–55 to Tk 55–60. Goat and sheep hide prices rose by Tk 2 per square foot. Though small, this increase may signal positive market signs if enforced well.
The Department of Livestock Services reports 12.44 million sacrificial animals this year, exceeding local demand by over 2 million, so no shortage is expected.
Export Promotion Bureau data shows leather exports reached about USD 1.06 billion from July to May, up 12.55% from last year. Experts see this as a positive sign for the industry.
To sustain growth and meet global demand, experts stress good quality control and preservation of Eid sacrificial hides. If managed well, this Eid’s leather could boost the industry long-term.
MSK/
