The Government of Bangladesh has revealed intentions to create a specialised body for the growth and administration of the leather industry, a major step towards bolstering Bangladesh’s leather sector. The project, which focuses on both public and private businesses, aims to improve the industry’s growth and worldwide competitiveness.
A draft of the Bangladesh Leather Industry Management Authority Act 2024 has been posted on the Ministry of Industries’ website, and comments from relevant parties are being requested. This is in response to companies’ persistent requests for a specific office under the PM’s Office to broaden the export portfolio of the nation.
Prime Minister Sheikh Hasina unveiled these plans during the inauguration of the Bangladesh Leather Footwear and Leather Goods International Sourcing Show (BLLISS-2023) last October.
She emphasised the Government’s commitment to developing area-based tannery industrial estates in regions such as Chittagong and Rajshahi, aiming to enhance leather preservation, processing, and overall industry growth.
The leather sector, once one of Bangladesh’s top three export earners, has seen a drop due to local value-addition issues, poor compliance with international standards, and competition from other countries. In fiscal year 2022-23, leather exports value was US $ 123.44 million, down sharply from US $ 397.54 million in FY ’14, according to data from the Export Promotion Bureau.
Bangladesh has 165 leather and footwear industries and generates 400 million square feet of leather annually. According to the plan, the new body will consist of three members and a chairman, with its headquarters located in the Savar Tannery Industrial Estate.
The members will be joint secretaries, and the chairman will be an additional secretary. The Ministry of Industries’ secretary or senior secretary will preside over an eight-member board that will manage the authority’s day-to-day activities.
Along with officials from several Government Ministries, the board will include representatives from important industry bodies like the Bangladesh Tanners Association, Leather Goods and Footwear Exporters’ Association, and Bangladesh Finished Leather.
Industry leaders, including Shaheen Ahamed, Chairman of the Bangladesh Tanners Association, have expressed support for the formation of this authority, highlighting the potential for quicker problem identification and resolution within the sector.
To ensure that Bangladesh’s leather sector can achieve international standards and increase its contribution to the country’s economy, this programme is a crucial first step in that direction.