Tanners eying 1cr animal hides this Eid, say move to export raw, wet blue hides 'suicidal'

Preparations are underway in full-swing at the tannery factories at Savar Tannery Industrial Estate for the collection of rawhides of sacrificial animals amid concerns against the approval of rawhide and wet blue hide exports ahead of Eid-ul-Adha, the peak season of animal hide collection. 

This time, the target of rawhide collection is approximately 1 crore to 1.5 crore pieces, Senior Vice Chairman of the Bangladesh Tanners Association (BTA), Shakhawat Ullah, told The Business Standard.

He also voiced concerns regarding rawhide management, saying that the central effluent treatment plant (CETP) in Savar still remained incomplete, four years after launching. 

"However, this year's preparation is better than other years," Shakahwat added.

On the other hand, industry leaders say the governmental approval of the export of rawhide and blue wet hide ahead of the Eid season this time may trigger instability in the market and take a toll on both investments and normal exports.

BTA sources say so far 142 tanneries at Savar Tannery Industrial Estate are currently in production in anticipation of Eid. While a significant number of tanners are grappling with financial challenges due to export incentive arrears of roughly Tk250 crore, the government has already pledged to rectify the situation by clearing the arrears.

However, the permission for rawhide export in the Eid season could destabilise the market. Given the approval, it is likely that rawhides of sacrificial animals at field level are exported via borders, rather than being acquired by the Dhaka tanners, sources say.

At a recent media briefing, MA Awal, vice chairman of the Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association, stated, "The decision to export rawhide and wet blue hide is 'suicidal'. It will put investments worth around Tk10,000 crore in the local market at risk."

Awal also warned of possible crises in production and its subsequent aftermath.

"If production at tanneries is interrupted due to a shortage of raw hides after the Eid exports, the added value will decrease, and leather exports may fall by 30-40%."

Govt initiatives for rawhides processing

Commerce Adviser Sheikh Bashir Uddin recently said that this Eid-ul-Adha, 30,000 tonnes of salt have been distributed without cost to madrasahs and orphanages, facilitating the easy storage of rawhides. In addition, permission has been given to export raw and wet blue hides to increase demand for rawhides in the market. 

In addition, the transportation of rawhides to Dhaka from districts will remain banned for 10 days from the day of Eid-ul-Adha.

The adviser said the restriction on the entry of rawhides into Dhaka will enable the storage of rawhides with salt at the local level. Those who slaughter sacrificial animals will be able to donate the rawhides to madrasahs or orphanages, which will be preserved and sold later.

The livestock ministry has estimated the number of cattle eligible for sacrifice this Eid at 1.24 crore, in addition to a surplus of 20.68 lakh cattle.

This year, the price of large-size cow hides has been fixed at Tk 60-65 in Dhaka and Tk55-60 outside Dhaka. Besides, the price of small-size cow hides per piece is Tk1,350 in Dhaka and Tk1,150 outside Dhaka. In addition, the price of salted cow hides has been set at Tk22-27 per square foot and slated goat hides at Tk20-22.

Savar CETP left incomplete; work to raise capacity underway

According to a study by the Bangladesh Investment Development Authority (Bida), most of the local tannery companies currently lack Department of Environment clearance and Leather Working Group (LWG) certification— which are mandatory to attract global brands and investors. 

Consequently, companies at present have to import finished leather, instead of using their own resources.

Besides, the construction of a common chrome recovery unit at the Savar CETP to prevent environmental pollution has yet to be fully completed, in the four years since the plant was constructed at a cost of Tk1,015 crore and declared operable in 2021.

The clearance from the Department of Environment could not be obtained due to the lack of a system for resource generation through solid waste management. 

Consequently, the companies there are not eligible to be LWG certified.

Talking to TBS, BTA Senior Vice Chairman Shakhawat Ullah also demanded the incomplete work of CETP and solid waste management be completed. "If this is done, the plight of the leather industry will come to an end."

Of the 162 tanneries allocated in Savar, currently 140 are engaged in production of wet blue, crust, and finished leathers.

At present, the capacity of the leather management at Savar CETP stands at 14,000 cubic metres, against the demand of 32,000-35,000 cubic metres during Eid-ul-Adha, according to the Bangladesh Small and Cottage Industries Corporation (Bscic).

A technical team is working to increase the capacity of the CETP to 20,000-25,000 cubic metres. Initially, six companies were allowed to set up ETP at the estate. The process to grant permission to 8 to 10 more companies is underway, said Bscic Chairman Saiful Islam recently.

Bangladesh's share in global leather market 

According to data from global market research firm, Fortune Business Insights, the global leather goods market was worth about $440.64 billion in 2022, which is expected to be increased to $738.61 billion by 2030.

According to the Export Promotion Bureau (EPB), Bangladesh's export earnings from the leather sector in the 2023-24 fiscal year were $1.04 billion, which was surpassed in the first 11 months of the 2024-2025 fiscal year, with exports reaching $1.06 billion.

The leather industry's annual exports are currently hovering around $1.2 billion to $1.6 billion. However, if financial incentives and policy support are provided, like those in the readymade garment sector, annual exports of $5 billion are possible by 2030, said Syed Nasim Manzur, president of Leathergoods And Footwear Manufacturer & Exporter's Association of Bangladesh, and managing director of Apex Footwear Ltd.