Govt unveils plan to revive leather sector, target global market
Commerce Minister Khandakar Abdul Muktadir on Thursday said that the government is working on an integrated reform plan to revive Bangladesh’s leather industry and restore its position in the global market by reforming the tannery sector, attracting fresh investment and ensuring internationally compliant production systems.
Muktadir said the government would create an opportunity for a “graceful exit” for investors who, despite having invested for years, are currently unable or unwilling to make further investments. This, he said, would create space for new entrepreneurs and investors.
He said ensuring 100 percent compliance in tannery operations would be mandatory in the future, while obtaining Leather Working Group (LWG) certification would be made compulsory to enhance acceptance in international markets.
Instead of exporting raw hides, the government aims to promote domestic processing and export of footwear, bags and other high-value leather goods, thereby building a “Bangladesh Leather” brand, he added.
Regarding one of the sector’s major challenges-the Central Effluent Treatment Plant (CETP) at Savar-the minister said initiatives had been taken to construct a new world-class CETP.
At the same time, renovation of the existing CETP is also being considered, he added.
He said although the CETP was designed to handle 25,000 cubic metres of waste daily, its effective treatment capacity currently stands at around 14,000-15,000 cubic metres.
Large tanneries will be required to install their own effluent treatment plants (ETPs), while smaller tanneries will have to coordinate with the central CETP system to ensure full compliance, he said.
The government will also take initiatives to establish several factories to produce tallow, bone meal and other usable products from solid tannery waste.
Through this initiative, the Savar tannery industrial area is planned to be transformed into an integrated waste-management industrial zone.
To expand markets for leather and leather goods, initiatives are being taken to enhance trade facilities with Japan, South Korea and European countries.
The government also plans to encourage major leather industry companies from Spain and Italy to invest in Bangladesh.
The minister said the government aims to launch a skills and design development centre in Savar by 2027 for the leather and other industries.
He said the government would bring the leather sector back to a strong position in the global market by improving skills, strengthening design capabilities, promoting environment-friendly production, facilitating investment, installing ETPs and resolving complexities related to bonded facilities.
Australian Deputy High Commissioner to Bangladesh Clinton Pobke attended the programme as a special guest.
FLAXA President Syed Nasim Manzur, SANEM Executive Director and Professor of Economics at Dhaka University Dr Selim Raihan, and representatives of businesses, tanneries and footwear entrepreneurs, workers and development partners also participated in the discussion.
