Every year after Eid-ul-Adha, there seems to be a crisis surrounding the price of sacrificial animal hides in Bangladesh. This uncertainty has been ongoing for more than a decade. Ahead of the upcoming Eid, seasonal hide traders also worry about not getting fair prices. These traders collect hides directly from the field.

At the same time, small business owners are expressing concern over being unable to access bank loans. According to many involved in the industry, the situation has worsened because the production and export of leather goods have dropped significantly.

Many people donate sacrificial hides to madrasas, which seasonal traders then buy. A platform called the "Chamra Shilpo Rokkha Committee," formed by madrasa teachers, has demanded fair pricing for the hides.

Mufti Abdullah Yahia, the convenor of this committee and president of the National Imam Council of Bangladesh, blames a market syndicate for the ongoing price issues. Speaking to Bonik Barta, he said, "This syndicate must be broken. Hides should be purchased directly from madrasas, avoiding middlemen. Prices of everything have gone up, but not the price of sacrificial hides. Madrasa students and Islamic scholars work tirelessly during Eid, yet they don't even get the government-set prices."

He also explained that processing each hide with salt costs around BDT 270 to 320. In many cases, even this cost isn't recovered when selling the hides. As a result, some people have chosen to let the hides spoil rather than sell them at a loss in recent years.

Meanwhile, a report from the Bangladesh Bank reveals a troubling picture of the leather sector's finances. Banks have issued loans worth BDT 51.22 billion to the leather industry. BDT 41.45 billion has turned into defaulted loans, about 91 percent. Among state-owned banks, 92 percent of their loans to the sector are in default.

Shockingly, 96 percent of these defaulted loans are long overdue. Banks have already written off BDT 26 billion in unrecoverable loans. Of the total lending, BDT 22 billion was given for leather exports and BDT 6 billion for leather products. The rest was provided as industrial and working capital loans.

Most of the loans given in the 1980s have defaulted. In the 1990s, a few capable entrepreneurs entered the sector and remain successful. These are the few whose loans are still being repaid regularly.

According to the Economic Relations Division (ERD), if Bangladesh wants to earn 12 billion dollars from leather and leather goods exports by 2030, the sector must grow at 40 percent per year. To achieve that, ensuring proper compliance in the leather industry is essential.

On the other hand, data from the Bangladesh Tanners Association (BTA) shows that the country is losing around 500 million dollars annually in potential earnings because its leather industry lacks certification from the Leather Working Group (LWG)—a key international compliance standard.

Speaking to Bonik Barta, Sakhawat Ullah, the general secretary of BTA, said,

"Every year, our exports are declining. Due to environmental concerns, many international buyers are unwilling to purchase our products. To solve this and get LWG certification, we must have a proper CETP (Central Effluent Treatment Plant). Construction of the CETP started in 2013, with a Chinese contractor responsible for completing the work within 18 months. But even after eight years, by 2021, they failed to complete it. Later, BSCIC (Bangladesh Small and Cottage Industries Corporation) took over the project, deducting payments for the unfinished work. But what happened to that money? The work is still incomplete. Those responsible for this delay must be identified and held accountable."

He added, "The poor state of our tannery sector today is due to our failure to maintain compliance. Western countries and major global brands refuse to source products from us without solving environmental and waste management issues. As a result, we're forced to sell processed leather to China at very low prices, and they resell it to big brands at a premium."

During Eid al-Adha, companies collect large quantities of sacrificial animal hides every year. However, over the past 15 years, raw hide prices have dropped by at least 50 percent. Due to low export volumes, poor returns, and a lack of profitable outcomes for investors, traders have lost interest in buying raw hides. As a result, prices keep falling year after year.

When asked about this year's rawhide prices, Md. Mahfuzur Rahman (Rizwan), executive engineer of the Savar leather industrial city in Hemayetpur, Dhaka, told Bonik Barta, "It's still too early to say what the prices will be. But we are trying to ensure that prices remain fair. Everyone keeps talking about international certifications, but the reality is that leather products don't have a strong presence even in our own domestic market. Instead of being stuck in one place, we should work on building our brands and increasing our presence in the local market. There are many countries, like those in Africa, where LWG (Leather Working Group) certification isn't mandatory. But we're not even able to tap into those opportunities. So, to truly develop this sector, we need to build our own brands and target the markets that are still accessible. That's how we can ultimately push up rawhide prices."

Over the years, the prices of raw hides during Eid-ul-Adha have fluctuated but generally remained lower than traders expect. In 2019, cowhides in Dhaka sold for BDT 45–50 per square foot and BDT 35–40 outside the capital. Goat hides were priced at BDT 18–20 per square foot across the country.

In 2020, prices dropped, with cowhide going for BDT 35–40 in Dhaka and BDT 28–32 outside, while goat hides fetched just BDT 13–15. In 2021, the prices slightly recovered, reaching BDT 40–45 in Dhaka and BDT 33–37 elsewhere; goat hides rose to BDT 15–17.

By 2022, cowhide prices improved to BDT 47–52 in Dhaka and BDT 40–44 outside, with goat hides steady at BDT 18–20. In 2023, cowhide went up again to BDT 50–55 in Dhaka and BDT 45–48 elsewhere. Goat hides remained at BDT 18–20. In 2024, cowhide prices reached BDT 55–60 in Dhaka and BDT 50–55 outside, while goat hides increased slightly to BDT 20–25.

Despite this gradual upward trend, traders say these prices still don't reflect hides' real costs and potential value, especially considering inflation and the higher preservation costs.

From 1950 until 2017, Bangladesh's tannery industry was based in Hazaribagh, Dhaka. However, due to poor waste management and its location near residential areas, pollution levels were severe, affecting both residents and the Buriganga River.

The government initiated the Savar Leather Industrial City project in 2003 to address this. After 12 extensions and an investment of BDT 10.15 billion, the industry finally moved to Hemayetpur in 2017, under the leadership of BSCIC.

Although a Central Effluent Treatment Plant (CETP) was constructed, design flaws have prevented it from operating effectively. Bangladesh has met only 3 of the 17 compliance standards set by the Leather Working Group (LWG). Untreated wastewater continues to pollute the Dhaleshwari River, meaning the new zone is also causing environmental damage, similar to the old location. Because of these unresolved issues, export growth has stalled, and that stagnation directly impacts rawhide prices at the grassroots level.