The hide traders and tanners are blaming each other for the worst rawhide season the sector has seen in a decade.
The price of raw hide slumped this year after Eid-Ul-Zuha during which over 1 crore animals were sacrificed across the country. A large part of the demand for leather in Bangladesh is fulfilled through the rawhides of animals sacrificed on Eid-Ul-Azha.
Opposition Bangladesh Nationalist Party (BNP) accused the government that its decision to allow for export of raw hide will destroy the leather industry.
The leather industry is the second largest export-earning sector of Bangladesh garnering over 1 billion dollar annually. The domestic demand for leather goods is above 16,000 crore Taka.
The leather industry generates employment for close to 8,50000 people in Bangladesh out of which 70 percent are women.