Leather goods producers for suspension of rawhide export

The country's top 20 shoe manufacturers have expressed their interest in buying salted rawhides directly from traders. The companies have recently appealed to the government in this regard and urged it to stop exporting rawhides.

The appeal letter, written to Commerce Minister Tipu Munshi said tanneries and warehouses, as well as shoe manufacturers, are ready to buy salted rawhides directly from traders at government-fixed prices.

With a population of 170 million, Bangladesh has a huge market for leather goods. After meeting domestic demand, leather manufacturers have been exporting various finished leather products including shoes, bags, belts and purses.

Since the international market price for all finished leather products are good, exporting them brings much needed foreign currency for the country.

However, making rawhides easily available to these manufacturers is a matter of permission from the government. Once permission is issued, manufacturers of leather goods will soon start buying salted rawhides.

It is learned that more than a hundred companies of the country already manufacture leather and leather products by buying crust and finished leather from tanneries of Savar.

Domestic demand for leather is increasing every year. Leather shoes, bags, belts and purses are sold at high prices in the country. For instance, consumers spend Tk 2,000 to Tk 2,500 to buy a belt made of cow leather. Price of a good quality shoe is no less than Tk 4,000 in domestic markets.

Apart from creating markets in the country, Apex Footwear, Bay Emporium, Picard Bangladesh, Jenny Shoes, ABC Footwear, Ryder Leather Bags and Luggage, Yoko Leather and Dhaka Leather Corporation have been able to set an example in exports.

Shoes, bags, purses and belts made by these companies are being exported to various countries in Europe and the Middle East.

Apex Footwear has already received the Gold Certificate in the LWG audit of the international organization Leather Working Group. The company has its own international standard tannery at Hemayetpur in Savar.

It is learned that the Commerce Ministry is taking the appeal to stop the export of rawhides seriously.

According to the ministry, the government wants to see both the protection of the interests of the domestic industry and the effective implementation of price fixed by the government.

In this context, the Secretary of Commerce Md Zafar Uddin told The Business Post, “The price fixed by the government for rawhides is showing its effectiveness as the country has a big market for leather products. Tanneries, as well as shoe manufacturers, want to buy rawhides. The government will do everything to protect the interests of the domestic industry.”

Meanwhile, due to various crises including the coronavirus pandemic, the number of animal sacrifices decreased by 30 percent this year. As a result, collection of rawhides as per the target is uncertain. If the supply of finished and crushed leather from the tanneries is not ensured, the local companies will have to go for import within the next six months. For this reason, the government is being urged to stop the export of rawhides.