Bangladesh’s Huge Potential in Leather Goods and Footwear: Commerce Adviser

Adviser to the interim government on the Ministries of Commerce and Finance Dr Salehuddin Ahmed today said Bangladesh has enormous potentials and opportunity to make the leathergoods and footwear items as very good ones in the export basket. “Leather sector is very prospective for export diversification. For export diversification, the leather sector is a very good sector while this sector has prospects and problems as well,” he said.

The Adviser was briefing reporters after holding a meeting with the leaders of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association and Bangladesh Tanners Association at the Finance Division Conference Room. He mentioned that they have discussed various issues related with the prospects and problems of the leather sector. “We’ve discussed all the problems like why they shifted to Savar, what is the environmental condition there, their financing (problems), their certification to export leathers. We’ve discussed all of these issues,” he said.

The adviser said in the meeting, they have discussed everything to make the leather and footwear items as big export products for the country. “And this sector has every probability for such upgradation,” he added. Dr Salehuddin also mentioned that leather item is a raw material and it is locally produced. “This is a big advantage for us.”

Talking to reporters, Chairman of Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association (BFLLFEA) Mohiuddin Ahmed Mahin said that a sub-committee would be formed to address the problems and they would again sit with the adviser at his convenient time to explore the untapped potentials of the leather sector. He said the factories at Savar tannery industrial estates are hundred percent export-oriented and those are not entitled to sell leather in the local market.

Mahin alleged that due to the lack of fully operational CETP at Savar Tannery estate, they had to sell their products almost 70 to 80 percent lesser prices than the global market. For this, they are also not being able to make value addition. Mahin also lamented that due to incapacity of the CETP in Savar, they are also not being able to strike a balance between the buying and selling price of leather.    

He said the adviser has assured them of resolving the existing problems with a positive mindset. The BFLLFEA president said the failure of the leather industry and sector lies totally on the part of BSCIC, not on the part of the owners. MA Rashid Bhuiyan, Chief Adviser of Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association, alleged that the previous government forced them to go to Savar tannery industrial estate and thus they could not do their business properly over the years.

He said the previous government officials ‘lied’ to them and forced them to go there although there were no such infrastructures at Savar tannery estate. “We’ve apprised the adviser of our problems and hopefully, he will solve the problems and thus gave us such assurance,” he added. Rashid said their main demand is to make fully functional the CETP, adding, “We’re yet to get the LWG certificate and we’re being affected for that”.

He said, “We’ve urged the government to make fully functional the necessary infrastructures and wave the interests against our loans and thus rescheduling those.” He said the adviser has assured them of looking into their problems including making fully functional the CETP. A committee would also be formed among them and thus further discussions would be held. Asked about their assets which are in the ‘red zones’ at Hazaribagh, he said that those areas might have been out of the red zone by this time and discussion is also going in this regard through joint venture initiatives.

Bangladesh leather industry comprises the components of tanning and finishing, footwear and footwear components, leather accessories and leather goods, e.g. bags, wallets, belts, accessories, etc. Mentionable, products such as fabric-based footwear are also now being produced in Bangladesh for global retailers. International brands like Adidas, Aldo, Timberland, Marks & Spencer, Steve Madden, Esprit, ABC Mart, Nike and K-Mart, Sears etc. are sourcing leather goods or footwear form Bangladesh. European countries are the main markets for leather and leather products in Bangladesh.