Bags / Shoes & Accessories

Bangladeshi traders and exporters say environmental concerns are hampering exports of Bangladeshi leather to Europe and the US, as well as export earnings of up to $10 billion a year.

According to UNB Media, Bangladesh is selling raw and wet blue hides to selected countries for US$1 per square foot, with exports to Europe and the US fetching 50% to 60% higher prices if the leather industry meets international environmental standards. In 2020, the global leather products market is valued at USD 394 billion, and Bangladesh will earn USD 5-10 billion annually from leather product exports.

Mohiuddin Ahmed, chairman of the Bangladesh Leather and Leather Goods Exporters Association (BFLLFEA), said: "The price of designer leather shoes in the European Union (EU) and the United States (US) is $150 to $1,000 per piece. Double, but Bangladesh is unable to sell our leather products in European and American countries due to environmental problems. The environmental pollution problem in Saval Leather Industrial Park has not been solved yet, that's why the EU and the United States do not buy our leather, therefore, we are forced to use Sold for as little as $1 per square foot.”

Ahmed said that considering the current situation, the Ministry of Industry should allow at least 20 tanneries to set up their own Effluent Treatment Plants (ETPs) in order to meet the certification standards of the Leather Working Group (LWG). This will relieve the pressure on the Central Wastewater Treatment Plant (CETP) and will also address the issue of the leather industry being shut down due to pollution.

The chairman of Bangladesh Leather and Leather Goods Exporters Association (BFLLFEA) pointed out: "The tanning industry is not cottage industry, but heavy industry. Bangladesh Small and Cottage Industry Corporations (BSCIC) do not have the capacity to manage and help the tanning industry."

Over the past eight years, raw hides have declined year by year. Due to the low price of leather, the Ministry of Commerce has set price limit measures. In the capital region, cowhide is priced at Tk 47~Tk 52 per square foot, while outside the capital area, the price this year is Tk 40~Tk 44. Again, according to this standard, male goats are priced between Tk 18 and Tk 20 per square foot, while female goats are priced between Tk 12 and Tk 14.

According to Dr Mohammad Abu euusuf, a professor of development studies at the University of Dhaka, Bangladesh is missing out on a good opportunity to export a large number of leather products due to a lack of government policies and corresponding initiatives. If the leather industry obtains corresponding preferential policies and carries out modern technological reforms to eliminate pollution in the leather industry, it can achieve an annual export income of 5 billion to 10 billion US dollars.

Leather is one of the oldest manufacturing industries in Bangladesh and exports account for 10% of global leather demand, making it the country's second largest source of foreign exchange after finished garments (RMG).

Bangladesh has a favorable environment for animal rearing, which accounts for 2.0% of the world's total. According to experts, Bangladeshi leather is favored by the international market for its high-quality fine grain, uniform fiber structure, silky feel and natural texture.