Lack of environmental compliance, workers’ right hit leather industry

Staff Reporter  :
Despite its enormous economic potential to boost the country’s economy, the leather sector in Bangladesh is facing significant challenges due to concerns related to environmental compliance and workers’ rights.
Industry insiders have emphasised the urgent need for all stakeholders to make concerted efforts in order to reap the benefits offered by this sector.
Meanwhile, in the wake of Eid-ul-Azha, the processing of rawhide across the country has been severely affected by continuous rainfall, raising concerns about potential damage and the production of poor-quality leather.

Members of the Bangladesh Tanners Association (BTA) fear losses and a decline in leather standards if the rawhides are not processed promptly.
According to BTA, there is a target of collecting approximately ten lakh pieces of rawhides from the sacrificial animals within three months from across the country in phases. So far 4.5 lakh pieces of rawhides have been collected.

“We are collecting rawhides and processing them in the Savar tannery estate in phases. But the capacity of the Central Effluent Treatment Plant (CETP) is not satisfactory when the peak season arrives,” BTA General Secretary Sakhawat Ullah told The New Nation on Monday.
“We have decided that the raw hides processed in different places across the country will be brought to the tannery in phases so that the CETP can process them,” he said.

Concerned people of the tannery sector said that the inadequate capacity of the CETP at Savar is compounding the challenges faced by the industry.
The CETP is responsible for treating liquid waste and reducing environmental pollution. Currently, its capacity is only able to handle 25,000 to 30,000 cubic meters of liquid waste, when the peak demands during Eid-ul-Azha reaching 45,000 cubic meters.
This limitation not only hampers environmental sustainability but also prevents the attainment of the Leather Working Group (LWG) certification, which is crucial for accessing the international market, sources said.

Shaheen Ahamed, Chairman of the Bangladesh Tanners Association, emphasized the urgent need for increased government investment to make the CETP at the Savar Tannery Industrial Estate fully functional.
The failure to establish an environment-friendly industrial estate has hindered the sector’s ability to capture a significant share of the international market, he told the media recently.

“If an eco-friendly leather estate could be built, Bangladesh could potentially export leather and leather goods worth $12 billion by 2030,” he said.
Sakhawat Ullah said, “The compliance of the tannery industries is not still satisfactory. Still the capacity of the CETP has not been upgraded against the growing demand. Ensuring environmental compliance is a paramount importance to boost this promising sector.”
Despite being the second-largest sector after Readymade Garments, Bangladesh’s share in the global export market of leather and leather products remains at three per cent, according to the BTA.

Exports of leather and leather goods from Bangladesh maintained a stable performance during the first eleven months of the fiscal year 2022-23 (July-June). According to the provisional data released by the Export Promotion Bureau (EPB), the value of outbound shipments reached $1,120.24 million from June 2022 to May 2023, indicating a slight increase of 0.42 percent compared to the corresponding period in the previous year.
The stakeholders opined that there are huge potentials in the tannery sectors in the country, but still there are a number of challenges which needs to be addressed immediately to garner the financial benefits out of this sector.

Skilled manpower and improved conditions in the industry are vital for boosting this sector as shared by the stakeholders.
According to Tannery Workers Union, the tannery sector cannot be improved by depriving the workers of their due rights including fair salary as well as other perks and benefits like household, transportation and healthcare facilities.
President of the Tannery Workers Union Abul Kalam Azad told The New Nation that there is a lack of improvements in the conditions faced by workers in the industry.
“The plight of workers in the leather industry is another concerning issue. Poor working conditions and the deprivation of workers’ rights, including fair salaries and other benefits cannot garner benefits out of this sector,” he said.

Sakhawat Ullah said, “We try to address the workers’ demands through the workers’ union. Cooperations of all stakeholders are necessary to boost the sector. Compliance is necessary for the progress of this sector.”
“Addressing these issues promptly is crucial to ensure the industry’s growth, environmental sustainability, and the welfare of workers, ultimately enabling Bangladesh to strengthen its position in the global leather market,” he said.