onating raw animal skins and hides has seen a sea-change in the last decade and half, says Aamir Hussain, a resident of a posh locality in Lahore. “From being a religious ritual it has now become disposable stuff,” he adds. “People only have the option to donate them to commercial healthcare charities that have filled the vacuum left by informal educational institutions mostly run by religious outfits.”

The practice of donating animal skin directly to the needy has almost become extinct, mainly due to the price crash. Owing to multiple factors, the prices of raw cow skin dropped by 51 percent from Rs 2,500 in 2007 to Rs 1,200 in 2021. This year, the tanneries expect a hike in cow skin price to Rs 1,800 from last year’s Rs 1,200.

Interestingly, the prices of skins and hides should have more than tripled in this duration—that is, from Rs 2,500 to Rs 8,525 — if the parity between Pak rupee and US dollar was something to go by.

Similar is the case with goat skin that has seen devaluation by 69 percent — from Rs 700 to Rs 220. In contrast, the price of goat skin should have surged to Rs 2,385, from Rs 700 in the last decade and half, when calculated in relation to Pak rupee’s average value of around Rs 60 against US dollar, circa 2007.

Hence, the practice of donating skins and hides to the needy has become uncustomary over the years, as no one is keen to receive these. One major reason for the price fall is said to be the unviable business of leather industry.

The margins have become squeezed. This is evident from the dwindling rates of raw skins. If a processor of raw skin or hide gets relatively low tariff on energy and manages to save on other expenditures, the prices of raw skins may see an upward trend, says a market insider.

On one hand, the local industry is increasingly feeling the pinch of the high cost of production; on the other, the influx of cheap artificial leather has literally overtaken the market. It has proved the proverbial last nail in the coffin of the profitability of the leather business. It’s time the government took measures to watch the interests of the local industry. Secondly, it seems that the local tanners and leather goods manufacturers do not believe in proper branding of their products. If they focus on this aspect, they may be able to fetch a better price from the international market.

Owing to multiple factors, the prices of raw cow skin dropped by 51 percent from Rs 2,500 in 2007 to Rs 1,200 in 2021. This year, the tanneries expect a hike in cow skin price to Rs 1,800 from last year’s Rs 1,200.

Owing to multiple factors, the prices of raw cow skin dropped by 51 percent from Rs 2,500 in 2007 to Rs 1,200 in 2021. This year, the tanneries expect a hike in cow skin price to Rs 1,800 from last year’s Rs 1,200.

Since the ban imposed on the collection of skins and hides by religious organisations, several healthcare charities have come forward. But there should still be a strict audit of the entities that collect hides in the name of charity.

Free will of people to donate sacrificial animal’s skin or hide to their person of choice must be restored so that real benefits of this huge economic activity trickle down to the poor. In this way, the much needed exercise of transferring money from rich to poor could actually take place.

The government should formulate pro-industry policies to encourage tanners and leather processors that add value to raw skins and hides. Value addition attracts greater price that will in return make the whole business cycle worth it.

In this connection, the Bangladesh model is instructive. The government in Bangladesh used to fix prices of skins and hides. Under a planned strategy, the government recently raised the prices of animal skins. Should such a policy be introduced in Pakistan, the gradual increase in the value of skins and hides may restore the tradition of donations as well as help the business of tanners and leather processors. Not only this, poverty eradication too may get a boost as deserving individuals will then not shy away from donations of such worthy stuff.

Consequently, the Rs 500 billion sacrificial animals’ business and its allied trades might double in value over the next seven to ten years. According to an estimate prepared by the industry, the value of animal skins is estimated to increase by 3.95 percent this year, against last year. The value is said to be Rs 329.55 billion in 2022 against Rs 317 billion recorded last year.

It will fare even better if the assessment regarding the trend in numbers of animals is factored in. According to the industry assessment, some 5.9 million animals including 2 million cows and bulls, 3.8 million goats and sheep, and 0.1 million camels are projected to be sacrificed in 2022. (In 2021, 5.86 million animals were sacrificed.) However, much more needs to be done to increase the value of skins and hides.

The writer is a senior   reporter at The News