Tanners on Sunday urged the government to set up an independent board to develop the leather industry, which would help Bangladesh to export $300 billion worth of products by 2041.
They also urged the government to bring under stern punishment those who turned the Savar Tannery Industrial Estate unfitting for factory operations.
The stakeholders made the calls at a seminar, titled “Bangladesh Tanneries: Towards Compliance,” jointly organised by Bangladesh Labour Foundation (BLF) and The Asia Foundation’s Bangladesh office at a hotel in Dhaka.
Presenting the keynote paper, Dr M Abu Eusuf, executive director of Research and Policy Integration for Development (RAPID), said the leather sector is not seeing development due to the absence of compliance.
“This sector has untapped potential for Bangladesh. The government should provide common facilities to improve it,” he said.
He explained that the lack of compliance and low-quality products and raw materials will be a more serious issue after the country’s LDC graduation. Moreover, obtaining LWG certification will be critical to unlock the growth potential.
Exporters receive 30–40 per cent lower prices from international buyers for these products because of the lack of certifications, he added.
Eusuf said that the unique nature of the leather and tannery industry demands specialised technical expertise and entrepreneurial knowledge to drive sustained growth and ensure effective operation.
The Leather Development Authority/BEPZA-affiliated body should comprise a specialised team of technical experts and seasoned entrepreneurs who possess the necessary technical know-how, he added.
At least 15 factories need to be prepared for LWG certification within the next five years. Compliance is a must as well as government support regarding CETP and solid waste management, enhanced capacity of individual factories, regular monitoring and supervision by associations with support from experts, Eusuf also said.
Commerce Ministry Senior Secretary Tapan Kanti Ghosh said there is no substitute for a compliant tannery industry to ensure sustainable development. To increase foreign income, everyone should work together to achieve the LWG certificate.
Bangladesh Tanners Association (BTA) Chairman Md Shaheen Ahamed said it is unlikely that the government’s target to increase this sector’s export earnings to $5 billion by 2030 will be achieved.
“The sector is not developed enough to make that happen because of mismanagement and bureaucratic complexity. We want an independent board to facilitate the sector’s activities,” he said.
The country’s export earnings from this sector — which exports leather, leather products and leather footwear — were $1,223.62 million in FY2022-23, which was 15 per cent lower than the target of $1,440 million, as per the latest Export Promotion Bureau data.
After the Covid-19 pandemic situation eased, earnings from leather sector exports had increased to $1,245.18 million in FY2021-22, which was 32.23 per cent higher than the previous fiscal year.
Bengal Pelli Export Co Ltd Managing Director Sadeak Babu said they are counting losses after shifting to the Savar tannery estate from Hazaribagh due to the government’s unplanned decision to establish the estate by unskilled people.
