Rain-hit coastal salt fields strain supply chain ahead of Eid-ul-Adha
High leather industry demand pushing prices up
Highlights:
- Heavy rainfall disrupts Bangladesh salt production before Eid-ul-Adha
- Salt output far below seasonal production target after April rains
- Eid hide-preservation demand drives sharp increases in salt prices
- More sacrificial animals expected this year, increasing salt requirements
- Hide traders face rising costs, losses and shrinking business participation
- Government preparing free salt distribution and market monitoring measures
Ahead of Eid-ul-Adha, Bangladesh's salt market is under pressure as continuous heavy rainfall disrupts production while festival-driven demand pushes prices upward, with spillover effects already hitting animal hide preservation. Stakeholders warn supply chains may face further strain if the weather does not improve.
The season's production target was 2.715 million tonnes, but only 1.792 million tonnes had been produced by 12 May. Stakeholders say rainfall since 26 April damaged salt fields across Chattogram and Cox's Bazar, sharply cutting output.
Keep updated, follow The Business Standard's Google news channel
More than 41,000 farmers are engaged in salt cultivation across 69,000 acres in Chattogram and Cox's Bazar, with production continuing until 15 May, though continued bad weather now threatens the target.
The disruption is also affecting workers. Md Abdur Rahman said reduced salt inflows during Eid have lowered work opportunities and income compared to previous years.
Md Suman, proprietor of Jilani Salt Industry, added that damaged salt fields have restricted supply, and combined with Eid demand, prices have climbed. Salt price at the field-level rose from Tk230-240 per maund to Tk255-260, while mill price is now around Tk350 per maund, an increase of Tk50-60.
Demand typically surges during Eid-ul-Azha for hide preservation, which reduces moisture and keeps raw skins suitable for tanneries. Last year, over 9.1 million animals were sacrificed, including 4.7 million cattle and buffalo, requiring large volumes of salt.
This year, Fisheries and Livestock Adviser Mohammad Aminur Rashid estimated sacrificial animal demand at 10,106,334, indicating even higher salt requirements.
However, the Bangladesh Small and Cottage Industries Corporation (BSCIC) says supply remains sufficient. Sarwar Alam of the BSCIC Salt Cell stated hide-preservation demand is 87,142 metric tonnes, while stock exceeds 150,000 metric tonnes.
Raw salt from coastal fields in Chattogram and Cox's Bazar is transported to factories for drying, cleaning, crushing and refining before marketing, with a significant portion used in hide preservation.
The Greater Chattogram Hide Traders Association said the sector has contracted sharply, with active traders falling from 200-250 to just 30-35 due to losses and capital shortages. Traders also report pressure from rising salt prices, labour costs and dues from tannery owners, with cowhide preservation costing about Tk500 per unit.
To address seasonal demand, the government has taken preparations, including free salt distribution, as in previous years. Under this programme, BSCIC will distribute 9,819 tonnes through 270 mills to 10,892 madrasas, orphanages and Lillah institutions, at a cost of around Tk20 crore.
SM Alamgir Kaderi, deputy general manager of BSCIC Chattogram, said official salt prices will soon be fixed based on production, supply and stock, alongside market monitoring.
Stakeholders emphasise that salt is not just a commodity during Eid, but a critical input for the leather industry, and any disruption in supply or pricing stability could place the entire hide preservation system under pressure.
