Home ›› 16 Jun 2023 ›› Front
Bangladesh used to witness a high demand for rawhide of cows, goats and buffaloes particularly during Eid-ul-Azha celebrations, and such ventures were widely regarded as profitable for seasonal rawhide traders across the country.
But raw hide prices have dropped drastically for the last couple of years due to lack of proper government policy support, and syndicates, industry insiders say.
To resuscitate the leather industry and boost foreign currency inflow from exports, tanners have sought proper policy support from the government, and a special modern palli for those who could not set up their business in Savar Tannery Industrial Estate.
Industry leaders made the demands on Thursday at the inaugural ceremony of three-day Bangladesh Leather and Footwear Expo 2023, organised at the International Convention City Bashundhara (ICCB) in Dhaka.
At the event, speakers pointed out Leather Working Group (LWG) certification, Common Effluent Treatment Plants (CETPs), social compliance, and policy support as key challenges behind improving the leather industry.
Bangladesh Tanners Association (BTA) Chairman Md Shaheen Ahamed said, “Despite huge potential, we cannot take the opportunity due to a lack of management, compliance, and LWG certifications. “Our leather industry will face further challenges if we do not get GSP facility after Bangladesh’s LDC graduation.”
He continued, “Our cost of doing business has increased significantly over the years. We have to take certificates from different departments, and renew those every year.
This creates unnecessary hassle and increases costs too.
“The certifications should remain valid for five years instead of one.”
Shaheen pointed out, “Bangladesh has a big market for cattle. The government must ensure policy support so that the leather industry can move forward and cattle farmers can achieve sustainability. Cattle imports must be restricted. “We urge the government to set up a special modern leather palli with a solid waste management system. This will help boost the ailing leather industry.”
Bangladesh Paduka Prostukkarak Samity (BPPS) Vice President Ashraf Uddin said, “We cover 90 per cent of the local shoe market demand. We are now making footwear in different places such as Lalbagh, Bangshal, Chawkbazar, Hazaribagh and Keraniganj.
“So, we have to face many challenges. We want a special palli for us in Dhaka.”
Bangladesh Leathercrafts CEO Deeder Hossain said, “The prices of imported raw materials, including chemicals, have increased significantly in the last few years. This has impacted the industry negatively. We can no longer bring in workers even while offering them a higher salary.”
Vice-Chairman of Export Promotion Bureau (EPB) AHM Ahasan said, “We can boost the leather industry by manufacturing quality products and sell those at reasonable prices. Effective marketing is important too.
“LWG and compliance issues are big challenges for the industry. We are trying to increase exports of leather and leather goods, and hit our $1.3 billion annual target soon.”
Falling prices concerns industry
Hasan Bepari, a seasonal rawhide trader from Shariatpur, told The Business Post, “We used to purchase a good cow rawhide of sacrificed animals at Tk 1,200 – Tk 2,500 during Eid-ul-Azha, which now Tk 300 – Tk 400. “We used to buy a goat rawhide at Tk 500 – Tk 600, which now has little value.”
He added, “In recent years, rawhide prices have witnessed an unprecedented fall due to a significant drop in market demand at the factory level. Many potential sellers now prefer to bury their rawhide after failing to get the expected prices.”
Bangladesh Labour Foundation (BLF) Chairman Abdus Salam Khan said, “Raw materials for the leather industry are available locally and widely, but we cannot utilise those properly due to a lack of proper planning.
“Tanneries were shifted to Hemayetpur from Hazaribagh to save the environment, ensure compliance, and develop the sector. But the move has yet to bring any effective results.”
Khan added, “Bangladesh cannot export leather and leather goods to Europe due to not being LWG certified. Tannery owners should ensure compliance to boost their business. Nearly 2,000 people work in 132 tanneries around the Savar estate.
Chairman of Research and Policy Integration for Development (RAPID) Dr Mohammad Abdur Razzaque said, “Bangladesh’s leather goods and footwear export potential is underutilised. “Without LWG certification, no country can export leather to Europe, the US and some other countries. So this certification is crucial for developing the country’s leather industry.”
He added, “Bangladesh has to diversify its export markets to boost its economy. The country needs to make necessary policies, and resolve demand and supply issues to utilise this opportunity.”
