They said the extra rawhide would help fetch Tk 3000 crore from the sector in FY 2006-07.

The industry insiders attributed this projection of higher export earning to less extortion centring rawhide trading and low price of crude salt, an essential item that is used in rawhide processing, as well as a better price now offered for the exportable item in the international market.

Around 180 million square feet of skin and hide worth Tk 800 crore is assumed to be traded locally this Eid-ul-Azha season as against 140 million square feet traded the previous year, according to the business circle.

Tipu Sultan, president, Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLFA), told The Daily Star that they found the overall rawhide collection satisfactory despite some hindrances in transportation of hides and local syndication in price of the produce.

He said he is hopeful of achieving this year's target of export earning from the sector set by the government.

The Export Promotion Bureau (EPB) set the target of earning Tk 2030 crore from exports of rawhide, Tk 980 crore from footwear and Tk 560 crore from leather bags in the financial year 2006-07.

Bangladesh produces over 220 million square feet of leather every year, 70 percent of which come from sacrificed animals.

As per EPB data, finished leather exporters received 26 per cent higher price for their product in FY 2005-2006.

A piece of cow-skin was selling between Tk 800 and Tk 2000 and goat-skin between Tk 180 and Tk 250 at the Posta wholesale market in the capital yesterday.

The prices of cow-skin ranged from Tk 400 to Tk 800, while goat-skin sold between Tk 180 and Tk 200 in the same market last year.