July 23, 2024, 10:50 am

Eid-ul-Adha: Sacrifice and our economy

  • Update Time : Saturday, June 15, 2024
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Eid-ul-Adha mainly focuses on sacrificial animals, with most transactions involving their purchase. Other significant trades include electronics, spices, beverages, leather goods, clothing, and confectionery, according to data from relevant authorities and traders.

TDS Desk:

Eid-ul-Adha, the Muslim festival of sacrifice, has been witnessing a yearly increase in trade activity. The market surrounding this Eid in the country is currently valued at around Tk80,000 crore, with sales of sacrificial animals being the main driver of this growth.

Eid-ul-Adha mainly focuses on sacrificial animals, with most transactions involving their purchase. Other significant trades include electronics, spices, beverages, leather goods, clothing, and confectionery, according to data from relevant authorities and traders.

According to the Department of Livestock Services, in 2023, sales of various sacrificial animals, including cows, goats, sheep, buffaloes, and camels, reached around Tk65,000 crore. This represents a 54% increase from 2017, when the market was around Tk42,000 crore.

Stakeholders observe a shift in the sacrificial animal market: smaller animals priced at Tk50,000-Tk200,000 were once prevalent, but commercial farms and improved sacrificial cows valued at Tk20-30 lakh have driven market expansion.

Official estimates indicate that in 2023, some 10,041,812 animals were sacrificed, including 4,581,000 cows, 178,000 buffaloes, and 4,849,000 goats, along with numerous other animals.

The Ministry of Fisheries and Livestock reports the availability of 12,94,0367 sacrificial animals in the country for the upcoming Eid-ul-Adha, surpassing this year’s demand of 10,702,393 animals.

Following a meeting at the secretariat on 16 May, Fisheries and Livestock Minister Abdur Rahman announced an excess of 2,277,973 sacrificial animals compared to the demand, all reared domestically.

“The availability of sacrificial animals in the country is linked to the proliferation of commercial farms. The surge in sacrificial practices aligns with the expanding economic capacity, especially among individuals choosing locally bred, larger-sized improved cows,” said Md Imran Hossain, president of the Bangladesh Dairy Farmers’ Association (BDFA).

He said around 2 lakh farmers in the country specialise in raising various animals solely for the Eid market. Additionally, many households manage their livestock with a focus on sacrificial offerings, emphasising the significance of raising cows and goats for personal purposes.

Yet, the recent escalation in the cost of cow feed is driving up meat and beef prices. This situation is perceived to impose additional pressure on many ordinary individuals considering sacrifice.

Integrated Dairy Research Network (IDRN) reports a global rise of 20.6% in animal feed prices over the past year, with Bangladesh experiencing a staggering 54% increase.

EID-UL-ADHA DRIVES REFRIGERATOR MARKET SURGE

The Bangladesh refrigerator market currently stands at around Tk10,000 crore, with a significant portion of sales occurring in anticipation of Eid-ul-Adha.

Brands engaged in refrigerator manufacturing and sales prioritise this market, establishing extensive supply chains to cater to the high demand.

Electronics suppliers note that nearly half of annual refrigerator sales are concentrated around this Eid, translating to around Tk5,000 crore in business during this period.

A senior official from Walton, a local refrigerator manufacturer and seller, told   , “Roughly 50% of refrigerator sales occur before Eid-ul-Adha. Consequently, we annually gear up with an extensive supply system to meet this demand.”

Market analysts indicate a 15% growth in refrigerator sales compared to the previous year.

SPICES PREVAIL OVER CLOTHING

While new clothes are traditionally associated with Eid-ul-Fitr celebrations, their demand significantly diminishes during Eid-ul-Adha. Clothing stores see sparse crowds during this Eid, with minimal sales reported by traders.

Helal Uddin, president of the Bangladesh Shop Owners’ Association, said, “While Eid-ul-Fitr sees clothing sales worth Tk48,000-Tk50,000 crore, this figure dwindles to Tk4,000 crore during Eid-ul-Adha.”

 

Conversely, various grades of spices witness extensive trading during Eid-ul-Adha. Even individuals with limited incomes purchase spices for cooking meat, generating additional demand.

The surge in demand extends beyond common spices like onion, garlic, and ginger to include cardamom, cinnamon, cloves, cumin, and bay leaves, leading to price hikes.

Traders estimate approximately Tk5,000 crore in trade for these products, including spices and clothing, during Eid-ul-Adha.

HIGH DEMAND FOR DESSERTS, SOFT DRINKS

Eid celebrations witness a surge in demand for desserts and soft drinks. While homemade vermicelli and payesh (rice pudding) are traditional Eid delicacies, consuming yoghurt and sweets is also a customary practice based on individual capacity.

Yoghurt and sweet shops experience peak crowds during Eid-ul-Adha, surpassing any other time of the year.

Most yoghurt and sweets are retailed through local shops, contributing to a market worth Tk20,000 crore, with the yoghurt market alone exceeding Tk1,000 crore, according to data from the Bangladesh Sweet Manufacturers Association.

With over 30,000 sweet shops nationwide, including more than 20,000 non-branded ones, the milk market is closely tied to this sector, experiencing heightened demand during Eid, allowing dairy farmers to command favourable prices for their produce.

Additionally, there is a substantial market for soft drinks, with businessmen reporting a 30% growth compared to normal periods.

According to Statista, the global carbonated beverage industry was valued at about $400 billion in 2023, with a compound annual growth rate (CAGR) of 5.3%. In 2024, the carbonated soft drinks market in Bangladesh was valued at $0.9 billion, representing 0.27% of the global market, with an expected annual growth rate of around 10% between 2024-2028.

Beverage production and marketing companies reveal that soft drinks worth approximately Tk1000 crore are sold during Eid-ul-Adha alone.

Md Maidul Islam, chief marketing officer of Akij Food and Beverage, said, “The sale of large bottles of beverages significantly increases around Eid-ul-Adha, with companies experiencing a 30% growth during this period.”

DEVALUATION OF RAWHIDE

Rawhides play a crucial role in the economy during Eid. Traders estimate an annual availability of over 1.5 crore animal skins in the country, with around 80% sourced from sacrificial animals.

Previously valued at around Tk4,000 crore, the rawhide market has experienced a decline in recent years due to a significant drop in leather prices. Despite government-set price regulations before the sacrifice, these hides are even given away for free in many instances.

However, the market for other leather-dependent products remains robust, exceeding Tk10,000 crore annually.

Shaheen Ahmed, president of the Bangladesh Tanners Association, acknowledges the setback faced by the leather market during the relocation of tanneries from Hazaribagh. Nevertheless, he expresses optimism about the sector’s gradual recovery.

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