Environment-friendly industrial park needed to revive lather sector

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Economic Reporter :
It is high time to operate environment-friendly industrial park to revive country’s lather sector, the second largest export commodity, experts said.
Recognised foreign brands do not purchase goods made of Bangladeshi leather as the country’s industrial park is not environment-friendly. So, local footwear manufacturers like Apex import leather and make goods with them.
“If the leather industry had been environment-friendly, we could have exported domestic rawhides to Europe and America. We could even use leather in our factories. But, we can’t,” said Apex Footwear’s deputy managing director Abdul Momen Bhuiyan.
However, as per the decision of a tri-party meeting at the Commerce Ministry on Sunday, Rawhide trade is running smoothly across the country.
General Secretary of the Bangladesh Tanners Association (BTA) Md Sakawat Ullah said tannery owners have started rawhide procurement at the government fixed rate.
“According to the Sunday’s decision, tannery owners have started procurement of rawhide of sacrificial animals and it will continue for the next two months,” he added.
Bangladesh Hide and Skin Merchants Association (BHSMA) Chairman Hazi Mohammad Delwar Hossain said merchants have already started the selling of rawhide across the country.
“Most of the problems between tannery owners and merchants have been solved. Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) and leaders of the concerned associations will meet on August 22 for solving rest of the problems,” he added.
The leather industry is the country’s second largest export commodity. The estimated target of exporting leather was set for $ 5 billion by 2021 amid a sharp decline in export.
In fiscal 2018-19, the total value of rawhide export was recorded $1.02 billion, which is 6 per cent less than that of the last year. In 2016-17 financial years, the amount was $ 1.23 billion.
The tannery owners said it took a long time to start production at Savar following a sudden closure of tanneries in 2017.
Meanwhile, the owners added, many buyers of India and Japan left Bangladesh.
“China is now our sole buyer. They are taking the chance and offering very low prices,” said Maizdi Tannery director Shahidul Islam.
“We purchased 45,000 rawhides after the previous Eid-ul-Azha. Half of them are still unsold,” he added.
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