Leather sector eyes global comeback
The government is preparing an integrated reform plan to revive Bangladesh’s leather industry, with a focus on tannery compliance, fresh investment and higher-value exports to regain ground in global markets.
The plan includes restructuring the tannery sector, improving production standards, attracting new investors and addressing long-standing environmental and infrastructure problems, Commerce, Industries, and Textiles and Jute Minister Khandakar Abdul Muktadir said on Thursday.
Speaking at a policy dialogue titled “Advancing Bangladesh’s Leather Sector: Challenges, Opportunities and Reform” at BRAC Centre Inn in the capital, the minister said the relocation of tanneries from Hazaribagh to Savar was the right decision, but shortcomings in implementation and management had left the industry struggling.
The government will create opportunities for a “graceful exit” for tannery owners who, despite years of investment, are no longer interested in or capable of making fresh investments, he said.
“This will create space for new entrepreneurs and investors to enter the sector,” he said.
Muktadir said 100 percent compliance would have to be ensured across the tannery sector, while certification from the Leather Working Group (LWG) would be made mandatory to strengthen Bangladesh’s acceptance in international markets.
The government also wants to shift the sector away from raw-hide exports towards finished leather goods, including shoes, bags and other high-value products, under a planned “Bangladesh Leather” brand.
Addressing one of the sector’s biggest challenges, the minister said the government had taken an initiative to build a new world-class Central Effluent Treatment Plant (CETP) in Savar. Renovation of the existing facility was also being considered.
The existing system can effectively treat only around 14,000-15,000 cubic metres of waste against its projected capacity of 25,000 cubic metres, he said.
Large tanneries will be required to install their own effluent treatment plants (ETPs), while smaller units will have to ensure full compliance by operating in coordination with the central CETP system, Muktadir said.
The government also plans to establish several plants to convert solid tannery waste into usable products, including tallow and bone meal.
The initiative is aimed at transforming the Savar Tannery Industrial Estate into an integrated waste-management industrial zone, he said.
The government is also seeking greater trade facilities in Japan, South Korea and Europe to expand markets for Bangladeshi leather and leather goods.
It plans to encourage major leather industry companies from Spain and Italy to invest in Bangladesh, the minister said.
A skills and design development centre is also planned in Savar by 2027 for the leather and other industries.
Muktadir said restoring the sector’s strong position in global markets would require improved worker skills, stronger design capabilities, environment-friendly production, better investment facilities, proper ETP infrastructure and solutions to complications surrounding bonded warehouse facilities.
The policy dialogue brought together policymakers, industry representatives and other stakeholders to discuss the challenges and prospects of Bangladesh’s leather sector.
