Bangladesh’s leather industry is facing a severe crisis as exports continue to decline, with industry leaders blaming the lack of Leather Working Group (LWG) certification and inadequate environmental compliance measures. The failure to implement necessary environmental reforms is putting the sector at risk, as global buyers prioritize sustainability and certification.

According to the Export Promotion Bureau (EPB), Bangladesh’s leather exports fell by 11.65% year-on-year in the first half of the current fiscal year. The sector generated $62.48 million, compared to $70.72 million in the same period last year.

A tannery in BSCIC Leather Industrial City, Hemayetpur, Savar, saw its export earnings plummet by 48%, in just a year. This sharp decline is a direct consequence of Bangladesh’s failure to meet LWG certification standards, making it difficult to attract international buyers, especially from Europe and North America.

Industry experts and tannery owners point to the Central Effluent Treatment Plant (CETP) and solid waste management as the biggest obstacles to obtaining LWG certification. Without a fully operational CETP, achieving compliance with global environmental standards remains a distant goal.

“Without LWG certification, we have no access to the European market, and brand buyers won’t come. Our over-reliance on China has given Chinese buyers leverage to continuously push down leather prices.”

Md Sakhawat Ullah, General Secretary of the Bangladesh Tanners Association

Tannery owners have expressed frustration over the previous government’s short-sighted policies, which they claim have hindered industry growth. Many believe that without immediate intervention, Bangladesh’s leather sector may face long-term decline.