Rajarhat rawhide traders fear losses despite govt price fixing

Seasonal rawhide traders in Jessore's Rajarhat are facing growing uncertainty ahead of the upcoming Eid al-Azha. 

Rajarhat is a major rawhide market in the southwestern region, drawing traders from ten districts within the Khulna division, as well as prominent merchants from Gopalganj, Faridpur, Rajshahi, Pabna, Ishwardi, and Natore.

Although rawhide trading in the market is seasonal, thousands of traders depend the Eid al-Azha period for their annual income. This year, however, small, medium, and seasonal traders are worried due to rising costs, lack of financing, and uncertainty over fair prices.

The government has fixed the price of salted cowhide at Tk 62–67  per square foot in Dhaka, slightly higher than last year’s Tk 60–65. Outside Dhaka, the rate has been set at Tk 57–62 per square foot, compared to Tk 55–60 last year. Despite the increase, traders doubt whether they will actually receive the government-declared price because of weak market monitoring and irregularities in the leather trade.

Nazrul Islam, a small trader from Rajarhat, said that the cost of preserving hides has risen sharply because salt prices have increased by about Tk 100  per sack. Salt is the main ingredient used to preserve raw hides after sacrifice. He alleged that although the government distributes free salt, small traders rarely receive it. According to him, the salt meant for madrasas and orphanages is often sold elsewhere instead of being used for hide preservation.

Another trader, Anand Das, said small traders cannot access bank loans and are forced to borrow money from NGOs or local moneylenders at high interest rates. Because of this financial pressure, they struggle to make profits and often fail to receive fair prices for the hides they purchase during Qurbani (Eid al Azha)season.

Abdul Malek, a tannery owner in Rajarhat, said tannery owners are owed crores of Taka in unpaid dues. Since these arrears remain unpaid, tannery businesses are suffering from a severe shortage of capital ahead of Eid.

Traders also expressed concern about leather smuggling and weak law enforcement. They believe stricter monitoring is needed to stop illegal trading and ensure fair prices in the market. Some traders argued that Bangladesh’s leather exports are too dependent on China and suggested expanding into European markets to strengthen the industry and protect small and medium traders.

Deputy Commissioner of Jessore Mohammad Ashek Hasan said the district administration has already taken steps to monitor the leather market and prevent smuggling during the Eid.

Rajarhat Rawhide Market operates every Saturday and Tuesday and attracts traders from at least ten districts, including Faridpur, Gopalganj, Madaripur, Jhalokati, Rajshahi, Pabna, Ishwardi, and Natore. The market has around 200 small and large shops and provides employment opportunities for nearly 2,000 people.