Bangladesh’s leather industry is grappling with a sharp decline in exports, dropping 11.65% year-on-year in the first half of the current fiscal year. According to the Export Promotion Bureau (EPB), exports fell from $70.72 million in FY24 to $62.48 million, a worrying trend for one of the country’s key manufacturing sectors.
It continues to face a severe crisis as it continues to struggle with obtaining Leather Working Group (LWG) certification. Industry leaders warn that without immediate government intervention to resolve Central Effluent Treatment Plant (CETP) and solid waste management issues, the sector’s survival is at stake.
Despite repeated concerns raised by tannery owners and exporters, there is still no clear roadmap for achieving LWG certification. The certification is crucial for accessing global markets, particularly in Europe, but ongoing environmental compliance issues have stalled progress.
Md Golam Shahnewaz, Managing Director of Dhaka Tannery Industrial Estate Wastage Treatment Plant Company Limited, remains optimistic about potential improvements.
“In February, an expert team from the European Union will assess the CETP and solid waste management, focusing on capacity improvements. Based on their report, we’ll receive a roadmap outlining necessary actions and reforms,”
He added that while the CETP was in critical condition a year ago, significant reforms have been made, improving treatment quality.
Mujibur Rahman, President of the Leather Industry Development Committee, expressed frustration over the government’s inaction.
“It feels like eight years have passed, yet the sector’s main issue remains unsolved. Instead of fixing the problem, the government shifts blame onto tanneries to cover its own failures.”
He noted that leather that once sold for $1.60 per square foot now sells for just $0.60, putting immense financial pressure on businesses.
Tannery owners are urging the government to take immediate steps to fix CETP and waste management issues, including bringing in domestic or foreign investments to resolve the crisis permanently.
“This problem won’t be solved with empty promises. If necessary, the government should secure funds to fix it once and for all. The country’s economy will benefit, and the sector will survive,”
On December 16, advisers from the Ministries of Industry and Commerce visited the industrial city to discuss these issues. They assured tannery owners that efforts would be made to address some of the challenges before Eid-ul-Adha, a crucial period for the leather industry.
However, industry stakeholders remain skeptical, fearing that without immediate reforms, Bangladesh’s leather sector will continue to decline, threatening its long-term viability in the global market.
Related News
1] Bangladesh Leather Exports Drop 11.65% to $62.48 Million in First Half of FY25
2] LWG Certification and CETP Delays Leave Bangladesh Leather Exporters Vulnerable to Chinese Buyers
