Considered as the most promising sector after readymade garments, Bangladesh’s exports of leather and leather products fell by 12.03 per cent in FY 2017–18 (July–June) compared to the corresponding period of the previous fiscal year.
As per the figures from the Export Promotion Bureau (EPB), the sector’s export earning in the financial year 2017–18 is US $ 1.08 billion as against US $ 1.23 billion in the same period of FY 2016-17.
As per tannery owners, this fall in export earnings is due to forced relocation of tanneries to the Savar Tannery Complex, which is not yet fully functional.
Speaking to media, Chairman of the Bangladesh Tanners Association (BTA) Shaheen Ahmed maintained that export earnings of the sector has taken a hit after a long time, which he attributed mainly to lack of foreign investment in the Savar Leather Industrial Park following majority of relocated tanneries failing to make the cut as per compliance standards.
Despite huge opportunities in the American market following the so called trade war between the US and China, Bangladesh leather sector cannot grab the same due to compliance issues. “We cannot capture the foreign markets and buyers’ order because the Central Effluent Treatment Plant (CETP) is not fully functional yet,” Shaheen reportedly maintained.
It may be mentioned here that due to environmental reasons, the Bangladesh Government has decided to relocate the tanneries from Hazaribagh to Savar.
As per the reports, out of nearly 222 tanneries, only 155 have been shifted to the Savar Tannery Complex and most of the factories were yet to achieve the compliance standards.
