For the first time in nearly 35 years, the government of Bangladesh has decided to temporarily relax the ban on exporting raw and wet blue leather. This move, announced just before Eid al-Azha, aims to ensure fair prices for sacrificial animal hides.
Raw leather traders are pleased with the decision, believing it will slightly boost leather prices and help sellers secure better returns. Traders have long argued that the ban was unfair and hurt their business.
Bangladeshi Wet blue leather is in high demand in countries like China, Hong Kong, South Korea, Italy, Japan, and Spain. Bangladesh already exports finished leather to these markets, but demand has slowed in recent years. The relaxed export rule could revive the market and unlock new opportunities.
“Exporting raw and wet blue leather is a positive step to ensure fair prices. It will increase demand and allow sellers to export last year’s preserved hides, which can be stored for up to two and a half years.”
Manjur Hasan, President, Bangladesh Hide and Skin Merchant Association
Exporters have blamed tannery owners for keeping hide prices low by forming syndicates, leading to a collapse in demand and hurting exports.
Even though the government sets prices for salted hides, tanners often ignore them. As a result, sellers are forced to accept very low prices, leaving them with almost no profits.
“This benefits everyone, but challenges remain. Raw leather traders lack export experience, and with Eid approaching, finding new markets is tough.”
Aftab Khan, Former President, Bangladesh Hide and Skin Merchant Association
This year, the Department of Livestock estimates about 14 million animals will be sacrificed. While cowhides used to fetch Tk 85-90 per square foot back in 2013, prices have dropped to Tk 60-65 per square foot this year.
Many sellers complain that prices often fall below the government-set rates, with some even forced to bury unsold hides.
“Exporting wet blue leather threatens an industry that employs thousands and involves billions in investments. It requires further analysis to assess the impact on tanneries. Without value addition, wet blue leather fetches low prices. Why invest heavily in an industry only to export semi-processed leather? The ban since 1990 was meant to protect this sector.”
Md Sakhawat Ullah, Senior VP, Bangladesh Tanners Association and Owner
To help with preservation, the government is providing 30,000 tonnes of salt this year. Traders have welcomed both the export policy and the salt provision.
