Al Amin :
Considering the worst situation and experiences of the last year, fall of global leather export market, COVID-19 pandemic situation and existing compliance requirements, the government may opt for giving the permission of export of wet blue leather to avoid leather and leather goods export drop.
This will cut the cost of value addition and preserving cost of exporter, Abul Kasem Khan, Chairperson of the trustee board of Business Initiative Leading Development (BUILD), told The New Nation.
Khan said financing problemme need to be resolved as the commercial banks are reluctant to provide fresh loan unless they get the accumulated money to be received from this sector first.
He said tanners, wholesalers and related players should be prepared to monitor their activities to avoid the conflict and manipulation of prices fixed by the government.
If the exporters can be provided with a cash incentive of at least at 10 percent, the export of wet blue leather can contribute to export reducing wastage of raw hides, but for this preparation need to be taken immediately, he added.
According to the Exporting Promotion Bauru (EPB) data, the Leather and Leather goods is the second largest exporting sector in the country but showing a slump since 2017-18 (-12.95 percent while average export growth during 2011-16 was positive at 14.93 percent.
Statistics shows, export was $1019.78 million in 2018-19 but it came down to only $700.93 million (July-April) in 2019-20. The exports declined by 82.85 percent in the sector in the immediate past fiscal year.
Due to COVID-19, the loss estimated in leather export business from March to December 2020 is about $197 million across 160 factories and 30 percent of total workforce may lose their jobs.
Businesses are unlikely to revert back to usual level for at least another year as per the concern association. Moreover, due to market uncertainty upcoming exports which are postponed as shipments and payments are uncertain.
Because of trade war between USA and China, the price of leather in Chinese market, the main market of finished leather from Bangladesh, also wilted.
Bangladesh is now trying to capture the EU market where compliance is an important concern of EU buyers.
But the foreign buyers are not willing to see leather goods and footwear exporters use Bangladeshi leather in their production because of compliance, quality and traceability problems.
Considering the worst situation and experiences of the last year, fall of global leather export market, COVID-19 pandemic situation and existing compliance requirements, the government may opt for giving the permission of export of wet blue leather to avoid leather and leather goods export drop.
This will cut the cost of value addition and preserving cost of exporter, Abul Kasem Khan, Chairperson of the trustee board of Business Initiative Leading Development (BUILD), told The New Nation.
Khan said financing problemme need to be resolved as the commercial banks are reluctant to provide fresh loan unless they get the accumulated money to be received from this sector first.
He said tanners, wholesalers and related players should be prepared to monitor their activities to avoid the conflict and manipulation of prices fixed by the government.
If the exporters can be provided with a cash incentive of at least at 10 percent, the export of wet blue leather can contribute to export reducing wastage of raw hides, but for this preparation need to be taken immediately, he added.
According to the Exporting Promotion Bauru (EPB) data, the Leather and Leather goods is the second largest exporting sector in the country but showing a slump since 2017-18 (-12.95 percent while average export growth during 2011-16 was positive at 14.93 percent.
Statistics shows, export was $1019.78 million in 2018-19 but it came down to only $700.93 million (July-April) in 2019-20. The exports declined by 82.85 percent in the sector in the immediate past fiscal year.
Due to COVID-19, the loss estimated in leather export business from March to December 2020 is about $197 million across 160 factories and 30 percent of total workforce may lose their jobs.
Businesses are unlikely to revert back to usual level for at least another year as per the concern association. Moreover, due to market uncertainty upcoming exports which are postponed as shipments and payments are uncertain.
Because of trade war between USA and China, the price of leather in Chinese market, the main market of finished leather from Bangladesh, also wilted.
Bangladesh is now trying to capture the EU market where compliance is an important concern of EU buyers.
But the foreign buyers are not willing to see leather goods and footwear exporters use Bangladeshi leather in their production because of compliance, quality and traceability problems.
