Value of leather produced from sheep is determined by its quality and looseness is one of the quality attributes that determines the value of the leather. As of now, looseness in sheep skin can be determined only after the tanning process is done and it is a long and expensive process to treat the looseness in skins after the tanning process. An interdigital sensor based sensing system has been developed which works on the principle of sensing technique based on interaction of electric field with the materials under test. Finite element software has been used for analysis and design of sensors. It has been reported that a good correlation was found between the actual looseness values and calculated looseness values.