Staff Reporter :
The domestic leather industry is passing through a bad time owing to intense competition with its rivals and tannery relocation.
“As a result, Bangladesh has been experiencing a negative export growth in its leather and leather products since the fiscal year 2017-18,” Md. Shaheen Ahamed, Chairman of Bangladesh Tanners Association (BTA) told The New Nation in an interview.
He said that the tanneries were relocated from city’s Hazaribagh to Tannery Industrial State at Savar in 2017 for making the sector sustainable and environment friendly. As the Central Effluent Treatment Plant (CETP) is yet to be made functional, factories are not getting compliance certificate from buyers hurting the exports of leather and leather goods.
“In fact, renowned global brands have already reduced sourcing of leather and leather products from Bangladesh due to safety concern. Besides, the demand for genuine leather products has also declined in the world market due to booming demands of artificial leather. Both the issues have ultimately hurt the domestic leather industry by lowering its export,” noted Md. Shaheen Ahamed.
Replying to a question, he said, at present, the global market for leather and leather products are around $250 billion and of which Bangladesh’s share is very nominal. Even, it went down during the last few years.
“Bangladesh exported leather and leather goods worth US$ 1.13 billion in FY2013-14. But it came down to U$1.0 billion in the last fiscal year, registering a 9.28 per cent negative growth. It is happening due to declining demand for leather products in the world market,” said Md. Shaheen Ahamed.
He mentioned that the demand for artificial leather is increasing gradually in the global market, as the trendy modern consumers are more interested in low priced leather products made of artificial leather. For an example, consumers can buy a snicker at only $5.0 and throw it away after short use. If they go for the same products made of leather will cost at least $100. This is why products of artificial leather occupying fast in the global market.
“Tanneries have been shifted to fulfil the requirements to be compliant. We were forced to relocate from Hazaribagh to Savar in 2017 without making the CETP full operative. Now, no tannery is getting certification from Leather Working Group (LWG) due to partial operation of CETP. As a result, the compliant brands from Italy, South Korea and Japan are turning away from us and it therefore leaves a big impact on local leather industry.
“If we can fulfil compliance issues, those brands will come back to Bangladesh again,” added Md. Shaheen Ahamed.
The domestic leather industry is passing through a bad time owing to intense competition with its rivals and tannery relocation.
“As a result, Bangladesh has been experiencing a negative export growth in its leather and leather products since the fiscal year 2017-18,” Md. Shaheen Ahamed, Chairman of Bangladesh Tanners Association (BTA) told The New Nation in an interview.
He said that the tanneries were relocated from city’s Hazaribagh to Tannery Industrial State at Savar in 2017 for making the sector sustainable and environment friendly. As the Central Effluent Treatment Plant (CETP) is yet to be made functional, factories are not getting compliance certificate from buyers hurting the exports of leather and leather goods.
“In fact, renowned global brands have already reduced sourcing of leather and leather products from Bangladesh due to safety concern. Besides, the demand for genuine leather products has also declined in the world market due to booming demands of artificial leather. Both the issues have ultimately hurt the domestic leather industry by lowering its export,” noted Md. Shaheen Ahamed.
Replying to a question, he said, at present, the global market for leather and leather products are around $250 billion and of which Bangladesh’s share is very nominal. Even, it went down during the last few years.
“Bangladesh exported leather and leather goods worth US$ 1.13 billion in FY2013-14. But it came down to U$1.0 billion in the last fiscal year, registering a 9.28 per cent negative growth. It is happening due to declining demand for leather products in the world market,” said Md. Shaheen Ahamed.
He mentioned that the demand for artificial leather is increasing gradually in the global market, as the trendy modern consumers are more interested in low priced leather products made of artificial leather. For an example, consumers can buy a snicker at only $5.0 and throw it away after short use. If they go for the same products made of leather will cost at least $100. This is why products of artificial leather occupying fast in the global market.
“Tanneries have been shifted to fulfil the requirements to be compliant. We were forced to relocate from Hazaribagh to Savar in 2017 without making the CETP full operative. Now, no tannery is getting certification from Leather Working Group (LWG) due to partial operation of CETP. As a result, the compliant brands from Italy, South Korea and Japan are turning away from us and it therefore leaves a big impact on local leather industry.
“If we can fulfil compliance issues, those brands will come back to Bangladesh again,” added Md. Shaheen Ahamed.
