Leather sector remains vulnerable despite booming Eid economy

Eid-ul-Azha is fast approaching, bringing with it a surge in festive economic activity. It is estimated that transactions worth nearly Tk 100,000 crore take place around the festival. However, while most sectors enjoy strong business momentum during Eid, the leather industry once again finds itself in a struggling and vulnerable position. Prices of leather products have increased significantly over the years, yet raw hide prices have not seen corresponding growth. Despite being a promising standalone sector, it continues to face recurring crises annually.

As a result, although Eid generates massive economic activity, questions remain over whether the broader economic benefits are fully reflected when a major sector like leather fails to progress at the same pace. This picture emerges from data analysis and discussions with experts.

As in previous years, Eid-ul-Azha has once again triggered a large seasonal economic cycle across Bangladesh. From livestock farming, cattle markets, transportation, animal feed, leather industries, online sales, and mobile banking to spices and cooking ingredients—thousands of crores of taka are exchanged every year around the festival.

Economists estimate that economic activity worth around Tk 100,000 crore is generated annually around Eid sacrifices. Livestock farming, market management, transportation, animal feed, online transactions, mobile financial services (MFS), slaughter services, cold storage, leather collection, and household consumption together have turned Eid-ul-Azha into one of the country's largest seasonal economic drivers.

According to businesspeople and researchers, more than 10 million livestock animals are sacrificed in Bangladesh every year, with the majority coming from domestic farms. This creates a direct cash flow into rural economies. Small and medium-scale farmers, in particular, earn a substantial portion of their yearly profits during this period.

Farmers noted that a few years ago, Indian cattle dominated the sacrificial animal market, but domestic production has now increased significantly. This has encouraged local farmers, while many young entrepreneurs are also entering commercial cattle and goat farming.

Business activities around livestock markets across the country begin weeks before Eid. Market leasing, transportation, temporary shops, food stalls, labor, and security arrangements collectively create huge economic activity. Relevant stakeholders say the government earns several hundred crore taka in revenue from cattle markets alone.

Festival economy expert Mamun Rashid said Eid-ul-Azha in Bangladesh has evolved beyond a religious festival into a major domestic economic cycle. According to estimates, economic activity worth nearly Tk 100,000 crore is created annually around sacrifices, spreading across livestock farming, transportation, online commerce, mobile financial services, slaughter services, leather collection, and household consumption.

Untapped Potential in the Leather Industry

One of the sectors most closely linked with Eid sacrifices is the leather industry. A major share of the country's annual raw hides is collected during Eid-ul-Azha . Experts believe that with proper management, the sector could generate significantly higher foreign exchange earnings. However, complaints over unfair pricing, storage crises, and middlemen continue every year.

Commerce Minister Khondaker Abdul Muqtadir recently described the leather industry as a potential billion-dollar export sector, saying Bangladesh has export potential worth $10–12 billion in leather products.

Leaders of the Bangladesh Tanners Association (BTA) say between 10 and 12 million animals are sacrificed annually, and 50–60 percent of the country's total raw hides are collected during Eid-ul-Azha .

Former BTA General Secretary Shakhawat Ullah said that despite strong global demand for leather and leather products, weaknesses in local collection, preservation, and supply systems prevent the sector from realizing its full potential.

He said leather remains a major sector of unrealized potential. Although leather exports once exceeded $1 billion, earnings have now declined to around $800–900 million due to poor storage systems, inefficient supply chains, and shortcomings in environmentally compliant tannery management.

According to him, resolving these issues could help Bangladesh establish a stronger position in the global leather market.

Growing Popularity of Online Cattle Sales

In recent years, digital platforms have seen notable growth in sacrificial animal sales. Online buying and selling has become increasingly popular among urban consumers.

According to the Ministry of Fisheries and Livestock, around 85,626 sacrificial animals were sold online in 2025, generating transactions worth approximately Tk 5,987 crore. Online sales now account for nearly 0.94 percent of the total sacrificial animal market.

Many farmers and traders now use platforms like Bikroy.com for online sales. One example is Assurance Farms, based in Bhaluka, Mymensingh, which also supplies dairy products in Dhaka.

Senior Executive (Operations) Rakibul Islam said they started online livestock sales in 2024. This year, they have 250 cattle in stock, with over 100 already sold.

He explained that many buyers prefer booking animals online rather than caring for them beforehand. The company takes responsibility for raising the cattle until Eid and offers free delivery in Dhaka on or before Eid day. Strong demand has been seen in Gulshan, Banani, and Baridhara.

Mobile Banking Transactions Rise During Eid

Mobile financial services experience a significant rise in transactions during Eid-ul-Azha . Platforms such as bKash, Nagad, and Rocket are widely used for animal purchases, advance bookings, transport payments, and labor wages.

According to Bangladesh Bank, monthly mobile financial service transactions reached around Tk 171,664 crore at the beginning of 2025, with several thousand crore more added during Eid seasons.

Experts say digital payments have improved transparency and security while reducing the risks associated with carrying cash.

Higher Transportation Costs

Livestock transportation has become a major economic component during Eid. Trucks, pickups, trains, and waterways are used to move animals from farms to markets and cities.

Farmers say transportation costs increased further in 2026 due to rising fuel prices and fares. Transporting a cow from districts to Dhaka generally costs between Tk 3,000 and Tk 15,000, depending on distance, truck size, and animal numbers.

Experts estimate that the livestock transport sector alone generates transactions worth several hundred crore taka and creates jobs for drivers, helpers, loaders, and temporary workers.

Seasonal Employment for Millions

Employment generation is another major aspect of this economic cycle. Research and economic analyses suggest Eid-ul-Azha creates seasonal jobs for between 5 million and 10 million people, including transport workers, market managers, security personnel, slaughter service workers, hide collectors, and temporary shop employees.

Although many of these jobs are short-term, they provide important income opportunities for low-income groups and increase cash flow in rural areas.

Labor rights expert and former chairman of the interim government's Labor Reform Commission, Syed Sultan Uddin Ahmed, said a massive seasonal labor market emerges during Eid sacrifices.

He said around 10 million cattle are sacrificed annually, and an average of three workers are involved in slaughtering, cleaning, and meat preservation per animal. Slaughtering and cleaning a cow worth Tk 100,000 can cost around Tk 15,000 in labor wages.

Based on this calculation, nearly 30 million labor-hours of employment are generated during Eid, while sacrificial households spend approximately Tk 1,500 crore on worker wages.

However, he noted that many rural families perform these tasks themselves, so actual figures may vary. He stressed the importance of improving workers' health, safety, and skills, emphasizing that this seasonal labor market remains a significant component of Bangladesh's economy.