Traders count losses as cowhides sell at less than half govt-fixed rate in Jashore's Rajarhat

Cowhides are being traded at just Tk25-Tk28 per square foot in Jashore's Rajarhat, the largest leather market in southwestern Bangladesh, well below the government-fixed Tk60 rate, exposing a wide gap between official pricing and market reality.

Today (30 May) marked the first post-Eid trading session at Rajarhat. From early morning, seasonal traders and small merchants from all 10 districts of Khulna division, as well as Gopalganj and Rajbari, arrived with truckloads of hides.

Ranjit Das, a seasonal trader from Lakshipasha in Narail, brought 90 cowhides and 55 goat hides.

Under the blazing afternoon sun, he sat beside piles of cattle and goat hides, a gamcha wrapped around his head to beat the heat. His elder son, Romen Das, stood nearby as commission agents repeatedly inspected the stock. Despite at least five offers within half an hour, Ranjit refused to sell.

"The prices they're offering won't even cover my costs," he said. "I bought cowhides for Tk500-Tk900 each and goat hides for Tk50-Tk150. After salting, labour and transport, I spent another Tk150-Tk200 per hide. Yet buyers are offering no more than Tk800 for cowhide and Tk50 for goat hide."

"According to the government rate, each cowhide should fetch Tk1,500 to Tk1,700. At these prices, I cannot recover my investment," he added.

Although an estimated 15,000 hides reached the market, trading remained sluggish as outside wholesalers and tannery representatives largely stayed away.

Traders said local buyers were ignoring government-set rates and purchasing hides at less than half the official price, leaving small and seasonal traders under financial strain.

The slump has squeezed madrasahs and orphanages, which depend on Eid hide sales as a key source of annual funding. 

This year, the government fixed cowhide prices at Tk60 per square foot at the district level. Goat hides were set at Tk25-Tk30 per square foot, while she-goat hides were fixed at Tk22-Tk25.

Based on those rates, a medium cowhide should fetch Tk950-Tk1,200 and a large one Tk1,500-Tk2,000. In Jashore, medium hides sold for Tk400-Tk600, while large hides fetched a maximum of Tk800.

By that calculation, hides were trading at Tk25-Tk28 per square foot in Rajarhat, far below the official benchmark.

Sellers alleged that a syndicate was influencing prices amid weak administrative oversight, allowing buyers to dictate rates. Traders, however, said tannery owners were unwilling to purchase hides at government-fixed prices despite official adjustments.

Amjad Biswas, a seasonal trader from Bagerhat, said he brought 400 cowhides in a pickup van.

"Commission agents are offering Tk400 to Tk600 per hide. If the government rate were applied, I would get over Tk1,250 per cowhide. Instead, traders are setting their own prices and ignoring the official rate."

He said each cowhide measured 30-35 square feet.

"At government rates, each hide should be worth around Tk2,100. But here the highest price is Tk900-Tk1,000, which brings it to around Tk28 per square foot. Small traders would benefit if the official price were enforced."

Another trader, Romen Das, said repeated losses had left seasonal operators under pressure.

"We've been running this business at a loss year after year. A syndicate is destroying our livelihood. No government has taken action," he said.

Commission agent Gias Uddin pointed to rising costs and weak demand from tannery owners.

"We have to buy hides at least Tk20 below the government rate. After salting, labour and transport to Dhaka, costs reach up to Tk200 per hide. We cannot sell to tannery owners at government rates, so we can't buy at that price," he said.

He added that tannery representatives cited higher input costs.

"They say chemical prices have gone up, along with salt and labour costs. That's why they cannot pay government-fixed prices. As a result, leather prices keep falling."

Raju Ahmed, leaseholder of Rajarhat market, said trade was slow due to the absence of major buyers.

"This was the first market after Eid, so supply was lower than expected. Outside commission agents and tannery representatives did not come, which affected sales. We expect the next market day to be better," he said.

Rajarhat operates every Saturday and Tuesday. During Eid season, more than 1,00,000 hides are traded through over 300 commission agents.