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Eid rawhide market stagnant, sellers struggle with prices

Md Samiur Rahman Sazzad
19 Jun 2024 23:15:47 | Update: 20 Jun 2024 12:59:32
Eid rawhide market stagnant, sellers struggle with prices
Traders collect rawhides of animals sacrificed on the occasion of Eid-ul-Azha in an area of Dhaka city on Monday — Shamsul Haque Ripon

In a display of deep faith and community spirit, Bangladesh celebrated Eid-ul-Azha last Monday, the second-largest religious festival for Muslims, with due solemnity and fervour.

A total of 10,408,918 animals were sacrificed across the country, according to the Department of Livestock (DoL) notification published on Wednesday.

As in previous years, rawhide sales have started across the country, including the capital Dhaka.

The government earlier this month had fixed the price of salt-applied rawhides of cows at Tk 55-60 per square foot in Dhaka and Tk 50-55 per square foot across the country. 

However, this year as well, like in previous years, the rawhide prices are down, and traders have been struggling to sell their salt-applied animal skins to the market, worrying about not getting the right prices for multiple reasons.

Many people donate sacrificial animal skins to lillah boarding, madrasas, or orphanages, supporting orphaned children. Charity organisations are worried about the fair prices of the rawhides as well.

Traders cite unfair prices, blame rising costs

Seasonal traders have once again complained of unfair rawhide prices. Additionally, tannery traders noted that while the price of salt has slightly decreased, the wages of workers and transportation costs have risen. 

Some hides were also damaged while being transported from distant places to the tanneries, leading to rawhides being purchased for slightly less than the price set by the government.

Seasonal businessman Akhter Hossain came to a local tannery from Dakshinkhan in the capital. Expressing his frustration, he said, "We bought 306 pieces of rawhide for Tk 750 each. But today the market has gone down. Now the rawhides have to be sold for Tk 250 each. We lost a lot of money.”

Tanners said that they were not able to pay much to the seasonal traders due to the extra costs they incurred in processing rawhides. 

Rawhide trader Mohammad Motahar said, "The government has raised the price of salt-applied rawhide to Tk 1,200. But the rawhides have to be purchased for Tk 500 to Tk 900. Even business losses have to be calculated."

Successful rawhide procurement amid challenges

Tannery owners claimed that rawhides were bought below government-set prices; however, the quality of this year's rawhides was fine, and they met their purchasing targets.

Bangladesh Hide and Skin Merchants Association (BHSMA) President Md Aftab Khan said, “Rawhide supply was good this year. We traders had set a target of collecting 100,000 pieces of rawhide. Almost 100 per cent of the target has been met in Dhaka. We expect to collect around 10 million skins.”

“However, some skins have been damaged in places outside Dhaka. Due to being brought from long distances, some skins were damaged in hot weather,” he said.

Bangladesh Tanners Association (BTA) Chairman Md Shaheen Ahamed disclosed at a press conference in Dhanmondi on Wednesday that tanners collected about 500,000 pieces of rawhide in the first two days of Eid-ul-Azha.

Ahamed, who is also the managing director of Anjuman Trading Corporation, expressed gratitude for the coordinated efforts of the government, local administration, and tannery owners in ensuring the smooth collection and preservation of rawhides. 

"The transportation system has also improved this Eid, and there has been a positive change in the timely application of salt to the rawhides," he noted. 

The association has set a target to procure eight million pieces of rawhide this year, which is one million pieces fewer than what was collected the previous year.

DoL's livestock data

According to the Department of Livestock (DoL) notification published on Wednesday, there were 12,980,367 cattle in the country for Eid-ul-Azha in 2024, including 53,60,716 cows and buffaloes, 7,617,801 goats and sheep, and 1,850 other animals. 

Based on data from the eight departmental offices under the DoL, the total number of cattle slaughtered during Eid-ul-Azha included 48,79,777 cows and buffaloes, 55,27,868 goats, and 1,273 other animals. This means 25,71,449 cattle remained unsold.

Inadequate salting and compliance issues

Hedayetullah Ron, director of the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB), said, “The state of the leather business in the international market is dire. The quality of our leather and the method of salting it are inadequate. As a result, the situation remains unmanageable.”

Hedayetullah further said that the state minister of commerce highlighted the importance of adequately salting rawhides from outside Dhaka for preservation. However, the implementation of this practice is lacking, raising significant concerns.

“The price of rawhide is driven by market supply and demand. This year, approximately 2.5 million animals remained unsold. Rawhide should be supplied based on market demand. Furthermore, most of our factories are non-compliant and not certified by the Leather Working Group (LWG), preventing many from exporting directly,” he added.

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