Burgeoning economy of Eid ul-Azha

The  Eid ul-Azha  derives its origin from the 196th verse of  second Surah, Al Baqara ( The Cow), and the  word "Eid" appears in the fifth Sura al-Mai'da (The Table Spread),  of the Holy Qur'an, meaning 'solemn festival'. The days of the Eid ul-Azha are from the 10th to the 12th of Dhul Hijjah (three days and two nights). Sacrifice may be made until sunset on the 13th day. In the Indian subcontinent the festival is known as Bakr-Eid because of the tradition of sacrificing goats. It is also Qurbanir Eid as the Semitic word for "sacrifice" in Arabic is Qurban. Other languages combined Arabic word qurban with local terms for "festival", as in Kurdish Cejna Qurbani, in Pashto, Kurbaneyy Akhtar, in Chinese Gúerbang Jié, in Malay and Indonesian Hari Raya Korban, in   Philipino Araw ng Pag-Sasakripisyo and in Turkish  Kurban Bayram.
The Eid ul-Azha, celebrated after two months and ten days of the Eid ul-Fitr, is known as Feast of the Sacrifice, as an animal is sacrificed in commemoration of willingness of  Hazrat Ibrahim  (pbh) to sacrifice his dearest son Ismail as an act of obedience to Allah, before He intervened to provide him with a sheep to sacrifice instead. This festival is incorporated in the great pilgrimage to Mecca, which should properly be made during this month. It is also observed all over the Muslim world at the same time. The underlying importance of this festival is the spirit of sacrifice (qurbani) in memory of Hazrat Ibrahim's  great act of faith many centuries ago.
The feast of sacrifice in effect exists around the celebration, having an enormous impact on socio-economic arena. Eid ul-Azha is observed corresponding to the performance of Hajj by the financially able Muslims and the national economy has to transact a substantial amount, mostly in foreign currency, on this occasion. This year a total of 0.11 million able Muslims from Bangladesh have gone to Saudi Arabia for performing Hajj. Each pilgrim is expected to spend, on an average, Tk 0.3 million and the total expenditure by them is  around Tk 33 billion, equivalent to US$ 415 million.
The Hajj has been a major source of foreign currency income for Saudi Arabia and an important foreign exchange outlay for other economies since the earliest days when the hajj was introduced. Bangladesh economy has had to handle a substantial deposit as well as disbursement along with money exchange businesses by the banking sectors and job creation in aid of hajj performers.
There are huge financial involvement and economic activities centring around the Eid ul-Azha on account of sacrifice of livestock (cow, goat and camel). According to the Department of Livestock around 6.0 million  cows and 1.1 million thousand  goats and sheep are slaughtered annually in Bangladesh, out of which  60 per cent cows and 55 per cent goats and sheep are sacrificed on the occasion of Eid ul-Azha each year. According to Bangladesh Tanners' Association (BTA) about 3.5 million  cows and 5.0 million goats and sheep will the sacrificed this year.  Trade in cows and goats will involve about Tk 105 billion and Tk 8.25 billion respectively. Bangladesh is heavily dependent on supply of cows and goat from India. India exports about 10 million cattle to Bangladesh annually, out of which around four million are dispatched during the Eid ul-Azha (both formally and informally) to Bangladesh. Bangladesh government should earn Tk 2.0 billion in revenue at Tk 500 for each animal. Again, the Eid ul-Azha is the main season of supplying hides and skins. Sixty per cent of export of hides and skins is made following the celebration of this festival. According to an unconfirmed report, this year only Indian businessmen have targeted a market of Tk 320 billion in hides and skins from Bangladesh during  the Eid ul-Azha .  
The money market remains calm in a fairly liquid position this time around before the Eid ul-Azha and the Durga Puja because of a decline in imports and a rise in foreign currencies in the way of loans, remittances and investments.  Commercial banks witness a heavy rush for money transaction as a large number of clients withdraw from and deposit cash in banks only a few days ahead of Eid ul-Azha. The Bangladesh Bank pumped a record amount of money into the banking system as clients flooded almost all the branches of banks across the country before the start of Eid vacation. Markets for spices and electronic (refrigerators) gadgets witness bumper sales to the tune of hundreds of billions of takas ahead of Eid ul-Azha. With the majority of the Muslims spending a substantial amount of cash on the festival, remittances pour into Bangladesh economy and a special business spree starts for transportation sector as a large number of people travel.  Media reports confirm the magnitude of financial transaction marking the celebration of Eid in an economy of 155 million population with US $983 per capita gross domestic product (GDP).  
It has been a common observation that the  Eid ul-Azha cattle market has no direction, it is left to three S -- the syndicated traders, smugglers and snatchers. It is reported that syndicated traders have targeted a market of Tk 320 billion from Bangladesh during the Eid ul-Azha. They will earn this amount of money by exporting and at the same time importing raw hides at lower prices through unofficial channel. Thereby Bangladesh economy will lose huge revenues and its own prospect of exporting leather and leather products abroad.
It is also reported that smugglers are selling cattle on credit. As against smuggling of cow, they are receiving raw hide, fuel oil, edible oil, gold, silver, cigarettes, jute, hides and bones. The BGB and local police are reported to be bribed for this operation. Although the government provides credit facilities to tanneries, no credit is given to hide merchants who face difficulties to run business. Ultimately businessmen have to depend on smugglers. Local traders have reportedly reached an understanding with Indian smugglers for unofficially sending hides to India. Price of Indian cattle will be paid in terms of hides and skins. Money is being advanced for procurement of hides and skins during the Eid-ul-Azha.  The smugglers have reportedly managed the border guards,  police and customs officials. The government appears to have taken measures to prevent smuggling of hides. However, if stringent and foolproof measures are not taken, the pronouncement may turn into a farce. Salt is an important ingredient for preserving the raw hide. There may be crisis of salt this season. The government has been urged to allow duty-free import of 40,000 tons of salt in the interest of overcoming any ploy salt traders' syndicate might resort to in hiking price.
The management of cattle as well as hide and skin trading should have taken a desired direction. The country's economy would benefit from this important  sector if a  far-sighted plan was in place to handle border trade, to check corruption, to take on syndications. Although the government provides credit facilities to tanneries, no credit is given to hide merchants who face difficulties to run business. The performance of Hajj and the sacrifice of cattle during Eid celebration, besides being religious rites, generate money supply, expansionary in nature, promote trade and business, create job and bring boom for the economy in general. Competent macro-management of such supply side economy could play a significant role in attaining sustainable development. The cost-effectiveness of Hajj management could be more in favour of the economy if domestic infrastructural facilities were there to commute and accommodate major portion of pilgrims -- if not all -- in an effective and efficient manner.
Muhammad Abdul Mazid is a former Secretary and Chairman NBR.
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