Rawhide prices see slight increase, but below fair value

The government has increased the rawhide price by Tk5 per square foot and reopened wet blue leather exports for hides from this year's Eid-ul-Adha sacrificial animals, which, although falling short of expectations, has sparked interest among seasonal traders and religious institutions across the country.

For many, especially the poor who rely on selling sacrificial hides, this year's price is better than before, though still far below fair market value. 

For instance, Abu Yusuf of Kumari village in Mymensingh last year sold a rawhide from a cow worth Tk1.2 lakh for just Tk150. This year, a seasonal trader has offered Tk300 for a similar hide, which Yusuf says is still too low.

Photo: TBS

"The government has set the minimum price for cowhide at Tk1,350 in Dhaka and Tk1,150 outside the capital. But when local traders pay even a third of that, what's the point of setting such prices?" he asked.

However, in many areas of the capital, locals have chosen to donate their hides to mosques and madrasahs instead of selling them. 

Mosque officials said that last year, tannery staff collected the hides by 4pm, but this year, till 5pm, no one had come.

Over the years, losses in this seasonal trade have driven many young people away from the hide business. Although some are hopeful about higher prices due to the new export policy, they are cautious and conservative in their offers.

Rawhide traders said the government sets prices based on salted hides, which include the cost of salt and processing, arguing that to maintain a modest profit from tannery sales, it's tough to pay higher prices.

However, several Dhaka-based traders claimed they are offering over Tk600 for well-cleaned hides that they intend to sell for more than Tk1,000.

Tannery owners, meanwhile, expressed concern that opening up wet blue leather exports will add pressure to the local leather industry. But the public seems pleased with the new policy.

Mahbub Alam, an NGO official, noted that while hides used to sell for over Tk1,000 two decades ago, in recent years, they were either wasted or sold for Tk100–200 at the doorstep. "This year, the price has reached Tk300–350," he said.

He also called for an investigation to determine whether syndicates are manipulating the market, as rawhide sales directly affect poor communities and remain an emotional issue in Bangladesh.

More than half of Bangladesh's annual rawhide supply comes from Eid-ul-Adha. The government estimates that this year, the demand for sacrificial animals was around 1.3 crore, mostly goats.