Despite a government-fixed increase in rawhide prices this Eid-ul-Azha, small traders across Bangladesh continue to face financial losses as actual market prices fall short of expectations.
The official rate for salted cowhide was set at 60–65 BDT per square foot in Dhaka — a 5 BDT increase from last year — and 55–60 BDT outside the capital.
However, the majority of cowhides were sold at prices close to last year’s, ranging between 700 and 900 BDT per piece for large and medium hides.
Smaller or lower-quality hides were sold for as low as 600–650 BDT. Outside Dhaka, prices were even lower.
Goat hides drew little to no interest from buyers, and the price set for those — 20–27 BDT per square foot — rarely translated into actual transactions.
Traders and tannery operators estimate that around 8 to 8.5 million hides will be collected this year.
While tanners claim they purchased hides at a slightly higher rate than last year, seasonal traders argue that they did not receive fair market value. Some even reported selling hides at lower prices than in 2023.
Large and medium cowhides, typically measuring between 21 and 40 square feet, should have fetched between 1,500 and 1,625 BDT based on official pricing. In practice, however, the price per piece remained significantly lower.
A major issue lies in the selective buying practices of wholesalers. Many deducted 20–30% of the estimated value or rejected hides smaller than 20 square feet. This left many small traders struggling to sell their stock at viable prices.
Despite the domestic struggles, leather and leather goods exports have seen a positive trend. From July to May of the 2024–25 fiscal year, Bangladesh exported leather and leather products worth $1.06 billion — a 12.5% increase from the same period last year.
Still, traders argue that this export growth has not translated into better local prices. While early transactions on Eid day saw slightly better rates — about 100–150 BDT more per piece — prices sharply declined by afternoon.
Rawhide prices have been declining since 2013, when rates peaked at 85–90 BDT per square foot. A major collapse occurred in 2019 when prices dropped so low that thousands of hides were discarded or buried, resulting in an estimated loss of over 2.42 billion BDT.
Since then, government intervention has prevented similar waste, but the selling price of rawhides continues to remain below the officially declared rates.
For many seasonal traders, this ongoing disparity means another year of loss — despite promises of improvement.
