Kazi Md. Wahidul Islam :
At the very out set of human civilization it needs food, clothing and shelter. By hunting wild animal, they met up food and clothing simultaneously. Food from flesh and clothes from hides and skins i.e. leather. So, the history of leather industry is very ancient and parallel to human civilization. Its demand will never end as it fills up the basic need of human beings.
Leather industry in our country started its journey about 200 years ago as non-mechanized by the Nawab family of Dhaka. Day by day, it turned into semi mechanized to mechanized with modern technology. But one thing remains unaddressed and that is environment which is most important.
Bangladesh has established an industrial estate of leather manufacturers at Savar in Dhaka for pollution free leather processing and production. There are 130 industrial plots of different sizes. But unfortunately, due to fault in Central effluent treatment plants (CETP), not a single industry is working there in full swing. There are also a few leather industries running at other places like Chattogram, Gazipur and Jashore. A total of 300 such industries are presently running across the country.
In chemical processing huge amount of water is used. About 25 litres water is used for making one sq ft. finished leather from raw hides and skins. About 30 percent of the total weight of raw hides and skins is collagen from which usable finished leather is produced. So, by chemical and mechanical treatment huge amount and large volume of liquid, semi liquid effluent is discreet. These effluent needs effective treatment and recycling as it destroys the environment and creates bad odour, wastages, dirt’s and as well as chemical hazards.
Tanning has the unenviable reputation for being one of the filthiest evil smelling of industries. With the expansion of the industries to modern to highly mechanized factories in urban areas the problem became more acute and the reputation of the industry deteriorated further. Today with the population explosions and the strain being put on our world for saving our natural resources it is becoming more apparent that the disposal of wastages is a matter of responsibility to the society around it. Environment is largely polluting during processing.
Tannery wastages and chemicals are polluting the receiving water and air in four ways such as a) Physically b) Chemically c) Physiologically and d) Biologically.
To maintain the criterion of ‘sustainable development’ it is also mandatory for the leather industry to make development or production without hampering or destroying the environment. We can easily make an eco-friendly industry by using eco-friendly chemical, effluent treatment plant and applying eco- friendly production process.
At present leather sector is the 3rd highest export earner of our country. Once it was the 2nd highest export earner of our country. About 400000 lacs labour are working in this sector. Total bank investment is Tannery: Tk 7000 crore, footwear: Tk 1600 crore and leather goods: Tk 400 crore. But of this loans and advances, about Tk 2000 crore is classified as bad loans and loss.
Though foot wear export is increasing but leather export is not increasing in quantity. We are also not getting actual price. There are many reasons behind it. These are: –
1. Need for leather working group certificate.
2. Failure of Central effluent treatment plant to work.
3. Absence of ETP.
4. Sudden cut off utility in existing tannery at Hazaribagh by the government without any preparation to run the industry in new place.
5. Government decision to again start exporting of wet blue leather.
6. back-lock in loan repayment to bank
7. Huge amount of overdue credit with suppliers of raw hides and skins traders.
8. Lack of proper monitoring and responsibility from all the corners for the interest of the country.
9. Polluting the environment
10. Trafficking of raw hides and skins through the border at higher price than the local market or the country.
11. Local whole-sale traders are not interested to supply raw hides and skins to tannery owner as they have huge amount of overdue taka to them for year after year.
But footwear industry has grown rapidly from 2014-2015 to 2018-2019. From 2019-2020, export is decreasing due to Covid pandemic and Russia-Ukraine war. From 2021-2022 the export target of this year already achieved within first 8 months.
However, without Leather Working Group (LWG) certificate we cannot export our crust, finished leather, footwear and leather goods. LWG certificate is mandatory requirement for foreign buyers like H&M, NIKE, and Adidas etc. To get LWG certificate we have to fulfill many conditions. Of these conditions setting up of an effluent treatment plant is most important. It carries maximum weight.
Following the mandatory condition of LWG to build a sustainable world for the next generation, Bangladesh government with the help of China built a Central Effluent Treatment Plant (CETP) at Chamra Shilpa Nagari at Savar in 2017, after 10 years of its construction period.
But it is very unfortunate that the CETP set up in Savar leather industrial zone has not been functioning from the beginning. The environment is being polluted as before. Therefore, manufacturers of leather, footwear and leather goods are not getting LWG certificate. Due to this, there is no available buyer for our leather goods accept China. But China is purchasing our goods at a very lower price. At present price of per sq. Ft finished leather is 1.00 to 1.2 0 USD. On the other hand, if we had the effluent treatment plant in line with LWG obligations, the selling price of per sq. Ft finished leather would be 3.00 USD.
(The writer is General Manager,
Rupali Bank Ltd).
