Govt must allow building more ETPs to brighten the image of our leather goods to int’l brands
THE government should allow more private companies to build effluent treatment plants (ETPs) inside Savar Tannery Industrial Estate (STIE). This will not only develop the leather and leather goods industry but also brighten its image across the world. Local exporters are being deprived of standard international prices for not obtaining certifications from Leather Working Group (LWG), a global body for compliance and environmental certification in the leather and leather goods sector.
Local tanners have been selling tanned skins of cows, goats, and buffalos at almost half the standard international prices to non-compliant buyers, especially Chinese ones, as they could not obtain the LWG certifications for poor compliance to workplace standards. Local tanners have not been obtaining the LWG certifications as the construction of the central ETP at the estate could not be completed although over Tk 500 crore has been spent so far. The government has allowed only two private companies to construct their own ETPs. Experts ask the government to allow at least 30 private ETPs so that local tanners can get better prices from international retailers and brands.
Leather and leather goods exports from the country fetched $1.12 billion in the July-May period of the current fiscal year registering a 0.42 per cent year-on-year growth. In fiscal year 2021-22, earnings of the leather and leather goods sector amounted to $1.24 billion. Bangladesh has a target to export tanned hide, leather, and leather goods worth $12.50 billion at the end of 2030 as the demand for locally made leather goods has been increasing worldwide. Over Tk 10,000 crore has been invested in tanneries in Bangladesh after their relocation from Dhaka’s Hazaribagh to their current location at Savar.
The relocation of the leather estate from Dhaka to Savar was done due to environmental degradation caused by tannery industries. However, the target of a clean and environment-friendly tannery industry has not been fulfilled yet.
