Reza Mahmud :
The leather industry in Bangladesh holds significant potential for growth, particularly through adherence to environmental compliance standards in the tannery hub of Savar, industry experts have said.
With rising global awareness around environmental sustainability, the Bangladeshi leather sector is well-positioned to expand its footprint in international markets.
Stakeholders stress that, with adequate government policy support and strict implementation of compliance measures, the industry could substantially boost export earnings and generate more employment opportunities.
The country produces a large volume of rawhide, which, if managed efficiently, could further enhance industry prospects. Md Shakawat Ullah, Senior Vice Chairman of the Bangladesh Tanners Association (BTA) and Managing Director of Salma Tannery Ltd., told The New Nation on
Wednesday that the leather sector has the capacity to become a strong foreign currency earner through the export of finished leather goods.
“We need clear policy backing and full compliance with environmental standards in tanneries to unlock this potential,” he said.
Ullah warned against the continued export of wet blue leather, suggesting it could damage the domestic industry.
“This year, the number of animals sacrificed has decreased for various reasons. Exporting wet blue leather under such circumstances risks causing rawhide shortages, which may force factory closures and lead to loan defaults,” he cautioned.
The tanners have collected 385,000 rawhides in the first two days of Eid-ul-Azha this year, compared to 600,000 during the same period last year. Collections from outside Dhaka are expected to begin ten days after the festival.
For over 15 years, Bangladesh’s promising leather industry has faced serious challenges, including political mismanagement, environmental neglect, and control by powerful syndicates. Some entrepreneurs claim that under the previous Hasina government, the industry was deliberately hampered to benefit Indian interests – citing the persistent smuggling of raw hides into India during Eid-ul-Azha as evidence.
However, industry insiders report that this year authorities have taken steps to disrupt smuggling syndicates. Enhanced surveillance and increased law enforcement presence along smuggling routes offer hope that the illicit trade in hides may finally be curtailed.
Beyond smuggling, compliance remains the industry’s greatest challenge. Since relocating from Hazaribagh to Hemayetpur, Savar in 2017, the leather sector has yet to establish an environmentally-friendly processing system. Consequently, no tannery in the cluster has secured certification from the Leather Working Group (LWG), limiting access to discerning international buyers.
Commerce Adviser Sheikh Bashiruddin recently affirmed that the interim government is actively supporting initiatives to raise global demand for Bangladesh’s leather products. Notably, rawhide prices during this year’s Eid were the highest seen in the last decade, with expectations for further increases next year.
“To grow our economy, we must prioritise trade development,” the adviser said during a visit to a leather warehouse in Natore. He added that no previous government has done as much as the current interim administration to safeguard the leather sector.
The Commerce Adviser also acknowledged the longstanding deterioration of the industry and the entrenched syndicates that have hindered progress. “It will take time to dismantle these networks,” he noted.
Meanwhile, Shaheen Ahmed, Chairman of the BTA, highlighted the urgency of achieving compliance, stating, “There are 142 tanneries in Savar, yet not a single one has met environmental certification standards. This is causing key markets in Europe and America to lose interest in Bangladeshi leather products.”
Industry stakeholders agree that concerted efforts are needed to improve compliance and break the grip of illegal syndicates, which will be crucial to unlocking the leather sector’s full economic potential.
