IN the wake of severe environmental pollution, the tanneries from Hazaribagh in Old Dhaka were relocated to Savar Tannery Industrial Estate. Now, the entire Savar area is facing threat of pollution as the authorities concerned haven’t taken adequate precautionary measures till the date. Locals fear, Savar and its adjacent areas could be turned into a new “Hazaribagh” in the future, if the government does not take prompt step in this regard. Industrialists alleged that industry’s manufacturing base has been hollowed out with the relocation of the tanneries from Hazaribagh.
Not only that, the tannery industries are facing severe setback following shortfall in leather exports. It becomes a matter of grave concern that export volume of leather goods and finished leather has been declining in the recent months despite special incentive to this sector. In the last fiscal, the total export earning was US$30 crore less than the targeted figure. Undoubtedly, it is an awkward situation.
According to newspaper reports, Bangladesh’s export earnings from leather suffered a huge drop of over 12% in the last fiscal; with manufacturers blaming the forced relocation of the tanneries. The leather sector, the second largest export earner after apparel products, contributed $1.08 billion – or just fewer than 3% – of the total national exports of $36.66 billion in fiscal 2017-18. Export Promotion Bureau (EPB) data showed Bangladesh earned $1.23 billion from the sector in the FY 2016-17. Prime Minister had also announced leather as the “Product of the Year” in 2017 and ensured all-out cooperation to “boost this industry to reach its full potential”.
Apart from the industrialists, the rawhide traders including wholesalers and seasonal business people incur significant losses in the post-Eid ul Azha period almost every year due to government mismanagement, high price of salt, and low retail price of their products.
Since relocation of tanneries; the government has given no proper direction and so, the sector has hardly benefited from the special initiative. We think, in order to realize the full potential, the government must ensure unhindered utility services to the sector.
