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Tapping the potential of the leather sector in Bangladesh

Shanu Mostafiz
02 Jul 2022 00:00:00 | Update: 02 Jul 2022 00:32:19
Tapping the potential of the leather sector in Bangladesh

During Eid ul Adha, Ishtiaq Ahmed applies salt to the skin after slaughtering animals. The skin collectors often arrive in the evening to collect the skins after the animals are killed at about ten in the morning. He does this to prevent the skin from becoming spoilt. Ishtiaq remarked, "I know about skin since I deal in leather items. But everybody ought to be aware of this. Additionally, if the skin is removed without tugging too hard, the skin will look nicer. These two problems require a lot more public awareness. The country will benefit greatly if the leather that is accessible during Eid is gathered intact. That is part of our civic duty.”

Bangladesh's second-largest export item is leather and leather goods. Since the 1970s, Bangladesh has exported leather and leather goods to other countries. The government has continued to provide certain subsidies for the leather industry's exports since that time. Bangladesh's leather sector is appreciated in particular and is expanding daily. Export of raw leather was stopped for a number of years. 13–14 companies have been given permission by the government to export raw hides since last year.

People prefer to use leather products as luxury items in the developed world. Animal skins from Bangladesh are of a superior quality, and diverse nations in Western Europe and other developed countries value them. A good deal of leather items from Bangladesh are sent to Japan. A number of European nations also import leather goods. Typically, Bangladesh exports leather belts, shoes, sandals, gloves, jackets, and bags etc.

For animal husbandry, Bangladesh has an ample supply of grass and plants. In this region, cows and goats have been raised since time immemorial. The black goat from Kushtia is valued particularly because of its sturdy build and elastic skin. Since there are few barbed wire fences in this country and the animals are well-raised, there is fine leather to be had. During Eid, 60 per cent of the leather offerings are gathered. Additionally, leather is constantly accessible since animals are slaughtered to be cooked in everyday meals and served as food at weddings.

Due to the availability of raw leather in the nation, the tanning industry has grown here. In the beginning, Hazaribagh had a waste-treatment facility. The Buriganga river was used to dispose of the waste. A few years ago, the tannery business was relocated to Hemayetpur in Savar due to the pollution it caused in Dhaka, particularly along the Buriganga river. In addition to Dhaka, experts believe that tanneries can be established in Chittagong and Jessore.

Considering the huge potential of the leather industry, a technical institute for the leather industry was established in Hazaribagh in 1947. Gradually it grew in stature, and in 1989 it became known as Institute of Leather Engineering & Technology (ILET). At present, it is running a Masters with Honours program under Dhaka University.

The export of leather goods and shoes brought in $1.01 billion US dollar during the first ten months of the current fiscal year, according to the Export Promotion Bureau. By 2030, the government and researchers predict that the revenue will be $12 billion dollar. The leather sector has already suffered significant losses as a result of the Covid-19 pandemic and Ukraine-Russia war, but attempts are being made to make up for it.

According to the leather industry insiders, it is possible to earn more than what the researchers and the government assumes. This industry, so they claim, has a lot of promise. The nation may earn significant foreign exchange from the sector. The ways to move this business forward are with some rules and regulations, good planning, decision-making, and implementation. However, the parties involved are reluctant to discuss the issues facing the leather business in public. Even then, much is known. Concerned parties also lamented the level of negligence and indifference shown by the commercial and political establishments toward this sector.

What is this negligence and indifference? It is an obstacle in the way of the development of this industry. In general, the question has arisen whether the leather industry is Bangladesh's own industry. The leather sector is directly related to the agriculture of this country. This is where the vast raw materials of this industry are found. So why is it not as profitable as say the ready-made garment industry? Machinery in the apparel business is dependent on imports, just like other sorts of raw materials are. Despite having enormous potential, the leather business does not have the same advantages as the RMG sector. Although different export policies and actions have been made in this situation at a higher level, they are not being put into practice. If the government had provided the garment industry with the same facilities, the leather sector would have been more successful. The biggest advantage is the primary raw material for the sector is to be found in Bangladesh. Then, it is gathered and tanned here. Shoes and other products of any type can be made from finished leather. However, it is true that components for high-quality or exported goods, like as hooks, buttons, chains, bark, eyelets, and zippers, frequently need to be imported from China. Here, leather is produced for shoes and other things. With low-cost labor, goods may be produced here requiring much less money. It has been demanded that using local labor and raw materials will increase the value of the leather business by 85 per cent. This product is also in high demand internationally. Even then, this industry is not as developed as the garment industry. Many claims there is some sort of mystery involved. It has been claimed that some syndicate has not permitted the business to grow in the desired manner.

The problem can be better appreciated by talking about the challenges this industry faces. However, many contend that the government and the affected parties alone can address the challenges. The issue of compliance is one of the issues in this sector. The buyer's commitment to compliance is the first need if you want to ship products abroad. However, the issue of compliance in the leather sector has long gone unsolved.

When sending products overseas, a certificate called LWG is required. The process of availing this certificate is not very simple. The compliance and environment of the leather and leather industry are overseen by a group named LWG. In Bangladesh, only a few tanneries hold the certification. As a result, compliance needs to be thoroughly adhered to in order to ship a lot of leather goods overseas. Why is export compliance impossible in the leather business although it is doable in the garment industry? It is true that effective waste management requires a lot of water to comply with the standards of the leather industry. However, in this riverine country we can easily find a solution.

Leather collection is another issue this sector faces. On the day of Eid-ul-Adha, millions of animals are slaughtered. As a result, it is challenging to gather so much leather in a single day, and it is even more challenging to gather leather across the nation and deliver it to Dhaka. Since they are stacked up and sometimes not stored in the proper manner, people who collect the skins face difficulties. The long duration between the slaughter and collection degrades the quality or destroys a good amount of skin. Because it is not done by professionals, a lot of skin is lost when the animal is slaughtered during Eid and when it is separated from the meat. Collectors also pick them up after hours. The animal must be processed within two to three hours of being skinned. In this situation, salt should be added on the skin. Actually, we don't follow this process properly. Many layers of skin are damaged as a result.

We must engage in effective marketing and negotiation when it comes to selling our goods internationally. It isn't carried out in that way. Who will work on these remains the unanswered issue. It is an integrated process. It must be done jointly by the government, the association, and the business community. Additionally, market research is required. Everyone has to work on this since it is a serious problem.

What plans or actions does the government have in this regard? The World Bank and the government's Ministry of Commerce are now collaborating on four industries. Two of them are focused on leather and industrial footwear. Additionally, BSCIC is also focusing on this problem.

The leather sector has to be given due attention in the government's export policies. Although there have been several ideas discussed for this sector, none have been put into action. Plans must be carried out. According to rumors, leather collectors put off this activity during Eid-ul-Adha because they receive a reduced price and lose interest. The government can co-operate with leather collectors at this time. Government has to do more, according to concerned parties. Besides, the government has shifted the CETP to Savar to remove the waste from the skin, but the concerned people are complaining that the waste has not been treated properly in accordance with the rules. Basically, there is a lack of technology. If that is correct, the compliance has to be implemented with effective steps in this regard. Is it a difficult task that the government cannot do? The government has less surveillance in this regard. Government must step up surveillance if we wish to help this sector.

During Eid ul Adha or other occasions, it is important to educate the populace of the guidelines for preserving salt in the skin after the animal has been slaughtered. The skin won't be harmed if it is kept in storage for a long period. There is hardly any public knowledge of this. It may be shared with everyone via the media or by government employees at the upazila and union levels, increasing public awareness.

The writer is a freelance columnist. She can be contacted at shanu.mostafiz@gmail.com

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