More ETPs crucial to brighten leather industry image abroad: BTA

Staff Reporter :
The government should allow at least thirty private effluent treatment plants (ETPs) to get better export prices of leather and leather goods from the international market, Bangladesh Tanners Association (BTA) President Shaheen Ahmed said yesterday at a seminar ahead of this year’s Eid-ul-Azha.

Until now, the government allowed only two private companies for construction of the private ETPs there as the Central ETP at the tannery plant has not been properly functional yet, BTA President added.
He was speaking the seminar on ‘Action for Sustainable Development of Leather Industry’ jointly organized by the BTA and the Economic Reporters’ Forum (ERF) at the ERF office in Dhaka on Monday.
Local leather and leather goods exporters are being deprived of the international standard prices for not obtaining the much-required Leather Working Group (LWG) certification.

Elevating the image of the country’s leather and leather goods’ industries at global level, green tech-based interventions is a must and establishing more ETPs directly influence for obtaining the LWG certification, so we can get better prices from the international retailers and brands,” BTA president expressed.

Apart from these, the export growth of leather and leather goods witnessed a very narrow growth in the first eleven months of the FY23.

Bangladesh shipped out leather and leather goods worth $1.120 billion in first eleven months of the current fiscal year while it was $1.115 billion in the same period of the last fiscal year referring growth only by 0.42 per cent year -on -year as per Export Permission Bureau (EPB) data.

However, the government had set a target to earn $1.30 billion by exporting leather and leather goods in first eleven months and Leather export failed to achieve its target by 13 percent.
Industry experts said that along with external factors like post-Covid economic turmoil, the Russia-Ukraine war, global demand downfall, internal weaknesses like poor infrastructure, ETPs shortage , lack of slaughterhouse, fluctuating raw hide supply, poor processing, difficulties in accessing financing, lack of product diversity and innovation, and poor trade diplomacy are also posing barrier to the sector’s growth.