5 companies get wet blue leather export permit

The government has awarded export permit for wet blue processed leather to five companies considering the global demand for the semi-finished product.

The Ministry of Commerce gave its approval for wet blue hide export, which has been banned in the country since 1989, following recommendations from the Bangladesh Trade and Tariff Commission.

“We gave the permission to five companies. They may export up to 1 crore square feet wet blue hide under certain conditions. From now, these companies will be able to export the item if they receive orders,” Commerce Ministry Additional Secretary (Export) Md Hafizur Rahman told The Business Post.

When we principally decided to give permission, we asked to the tariff commission for its recommendations. They analysed the present condition of the domestic and international market and concluded that Bangladesh can export the item,” he added.

According to the ministry, Bangladesh’s leather export market has not been in a good shape for the last four years. In the last two years, huge volume of rawhides were destroyed due to a fall in domestic demand and price. At the same time, huge volumes of rawhides were also smuggled out of the country due to its low price.

Later, the ministry opted to allow export of rawhide and wet blue in a bid to save the industry.

Already, Bangladesh has received orders for rawhide and wet blue from several countries in the European Union and East Asia, including Italy, China and Japan.

According to the Export Promotion Bureau, Bangladesh exported leather and leather goods products worth $1,161 million in FY2015-16, with an export growth is 3 per cent. In the next fiscal, the country’s leather export growth jumped to 6.29 per cent with a total volume of $1,234 million.

In FY2017-18, leather and leather goods exports fell to $1,086 million registering a growth rate of -12 per cent. The growth rate stood at -6.06 percent and export volume fell to $1,020 million in FY2018-19.

Bangladesh witnessed a massive fall in exports to the global leather market earning only $797 million in FY2019-20, and the growth rate dipped to -22 per cent.

In FY2020-21, earning from this sector reached $942 million where growth rate stood at 18.06 per cent.