Commerce and Finance Adviser
Sub-committee to be formed to address leather sector problems
A sub-committee would be formed quickly to address the problems of leather sector of the country, aiming to fetch more export earnings.
Chairman of Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association Mohiuddin Ahmed Mahin said this while talking to reporters after holding a meeting with Commerce and Finance Adviser at Finance Ministry.
He also mentioned that they would again sit with the adviser at his convenient to explore the untapped potentials of the leather sector.
Mohiuddin said the factories at Savar tannery industrial estates are cent percent export-oriented and those are not entitled to sell leather in the local market.
He alleged that due to the non-operational CETP at Savar Tannery estate, they have 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.
Bangladesh has strong potential to boost leather-footwear exports: Dr Salehuddin
Mahin also lamented that due to incapacity of the CETP they are also not being able to maintain a balance between the buying and selling price of leather.
He said the adviser assured them of resolving the existing problems with positive mindset.
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.
He said the previous government officials lied to them and forced them to go there although there were no such infrastructures.
“We’ve apprised the adviser about our problems and hopefully, he would solve the problems and gave us such assurance,” he added.
Rashid said their main demand is to make fully functional the CETP.“We are yet to get the LWG certificate and we’re being affected for them,” he said.
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 and discussion is also going on in this regard through joint venture initiatives.
145 minutes ago
Bangladesh has strong potential to boost leather-footwear exports: Dr Salehuddin
Commerce and Finance Adviser Dr Salehuddin Ahmed on Sunday said Bangladesh has the enormous opportunity to make the leather and footwear items very good products in the export basket.
“Leather sector is very prospective for export diversification. For export diversification the leather sector is a very good item. This sector has prospects and problems as well,” he said while briefing reporters after holding a meeting with the leaders of Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association and Bangladesh Tanners Association at his Finance Ministry office.
He mentioned that they have discussed various issues related to the prospects and problems of the leather sector.
“We have discussed all the problems. Why they have been shifted to Savar, what the environmental situation is in there, their financing (problems), their certification to export leathers, we have discussed all these points,” he said.
In the meeting, the Adviser said, they have discussed everything to make these leather and footwear items big export products for the country. “And this sector has every possibility for this upgrade,” he said.
The adviser also mentioned that leather is a raw material and it is locally produced. “This is a big advantage for us.”
Government aims to simplify business, trade: Commerce Adviser
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.
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 from Bangladesh.
European countries are the main markets for leather and leather products in Bangladesh. However, Bangladesh also exports to the United States, Japan, UK, China and a few other countries.
The leather sector of Bangladesh includes 200 tanneries, 3,500 MSMEs, 2500 footwear making units and 90 large firms. Bangladesh meets the demand for about 10% of the world’s total leather market.
Recently, a sustainable 205 industrial units Tannery Estate has been developed with CETP and STP and the production of eco-friendly leather and linkage industries-packing, lasts, adhesives, outsoles are growing rapidly.
The Bangladesh government has taken many steps to upgrade the industry. The government has already set up a modern leather industrial estate in Savar and two more leather industrial parks will be set up in Chattogram and Rajshahi for unlocking the huge potentials of the country’s leather sector.
Tanneries of the Hazaribagh area have been shifted to a modern environment-friendly tannery estate in Savar. Tanners have now the option to build their industrial unit by applying modern concepts. They can add updated hydraulic and pneumatic machines, apply the latest production processes, and use technology upgrades.
111 minutes ago