[🇧🇩] Footwear, Rubber and leather Industry in Bangladesh

[Bilal9]

Date of Event: Dec 26, 2024

Source : https://www.tbsnews.net/economy/industry/craftsman-footwear-targets-100m-exports-next-5-years-746322 Short Summary: This thread will discuss Footwear and backward linkage related industry in Bangladesh

Craftsman Footwear targets $100m exports in next 5 years​

Craftsman Footwear and Accessories Ltd, an export-oriented shoe manufacturer, has set a target to export shoes worth $100 million by the next five years.

To achieve the goal, the company plans to introduce a double shift at its factory in Gazipur by next year. Currently, it operates three production lines, with the manufacturing of 4,500 pairs of shoes in a single shift daily.

"We want to export $100 million worth of shoes by the next five years," Craftsman's Managing Director Sadat Hossain Salim told The Business Standard.

The company has shipped $7 million worth of shoes in fiscal 2021-22, and has set an export target of around $10 million in the current fiscal year.

Salim added, "Initially, we want to introduce a double shift by the next year to increase the capacity. In addition, we have an expansion plan to build a green building to achieve our goals."

He further said that Craftsman intends to enter the capital market in the SME platform by raising Tk50 million from the public.

"We want to realise the fund from the market through offloading five million shares of Tk10, which will be spent on the company's modernisation, expansion, and bank loan repayment."

The company aims to raise the export volume sufficiently in the next two to three years. For this, it intends to construct new production buildings and separate warehouses.

"We owe a sizable sum to the bank as well. Furthermore, interest rates have lately increased at banks as well. Thus, we wish to arrange capital from the stock market," said Salim.

He mentioned that an application has already been submitted to the Bangladesh Securities and Exchange Commission (BSEC) for enrollment of Craftsman in the SME board, and Green Delta Capital Ltd is acting as the issue manager to bring the company to the capital market.

The journey of Craftsman

In 2017, the Craftsman started operation as a shoe manufacturer for the export market with 35 employees at a small factory unit in Joina Bazar of Sreepur Upazila in Gazipur.

Now, the company has a state-of-the-art manufacturing facility with a 1,00,000-square-foot factory with over 750 manpower.

Sadat Hossain Salim has been inspired to invest in the footwear industry from his professional experiences. Previously he served at several domestic and international companies, including Apex, Partex Group, HRC Group, Duncan Brothers.

Salim mentioned that skilled designers at the Craftsman factory produce a diverse range of shoes that adhere to global standards. The production unit has cutting-edge machinery from Italy and Germany, along with some technological support brought from China.

Shoes such as pami, formal, casual, oxford, moccasin, derby, and high heels are among the productions of the company.

Craftsman Footwear has already received two ISO certifications for product quality and factory environment. It also has C-TPAT and Amfori certifications, said the managing director.

He added that the company imports leather from some compliant tanneries in Asia to maintain compliance in shoe manufacturing.

However, some leathers are sourced by Craftsman from the Chattogram-based tannery Reef Leather, which has the worldwide Leather Working Group (LWG) certification.

"Though our nation is a significant supplier of raw hides, we are losing to China, Pakistan, and India in the competitive market because we do not have LWG-certified leather producers," said Salim.

Craftsman caters to local market too

Craftsman Shoes has already introduced its brand name in the local market and ensured its presence in the online space as well.

Shoes for local sales are produced at a separate unit of the company.

"We have a plan to set up a physical store for local customers," said Salim.

Around 80% of the shoes available in the country are made of synthetic or artificial leather, he said, mentioning, "There is a huge potential for manufacturing of leather shoes and products in the country."

 

[Bilal9]

Shoe City set to reshape Bangladesh's footwear industry​

Despite its potential, Bangladesh's leather product exports, including footwear, have stagnated at around $1 billion for nearly two decades, while Vietnam's footwear exports have skyrocketed from less than $1 billion to an impressive $25 billion. This stark contrast highlights the challenges hindering Bangladesh's leather industry from achieving its full potential.

A significant factor contributing to Bangladesh's export stagnation is its overreliance on imported materials for footwear production. This dependence has rendered the industry vulnerable to supply chain disruptions and exchange rate fluctuations, as industry insiders have pointed out.

In a bold move set to revolutionise the footwear industry, Bangladesh Shoe City Ltd (BSCL) emerges as a beacon of innovation and progress. This groundbreaking initiative, spearheaded by the visionary Jennys Group, consolidates the manufacturing of approximately 50 critical components for shoe production within a single, state-of-the-art facility.

Strategically positioned on a sprawling 35-acre plot in Mouchak union of Gazipur, BSCL stands poised to transform Bangladesh's position as a global footwear manufacturing hub.

With four factories, including one from Canada, already in operation, BSCL's momentum is undeniable. The project's allure has attracted the attention of 15 additional investors from diverse nations, including Japan and China, who are eager to join the venture.

Nasir Khan, chairman of BSCL, a subsidiary of the Jennys Group, reiterated the organisation's unwavering commitment to achieving 100% value addition within its state-of-the-art facility.

Acknowledging the setbacks caused by the pandemic and the ongoing Russia-Ukraine conflict, Khan emphasised the importance of self-sufficiency in the footwear industry.

Highlighting the challenges posed by an overreliance on imported materials, he said buyers often express concerns about the stability of supply chains heavily dependent on imports, underscoring the need for a more resilient and integrated approach.

To address these concerns and establish a robust footwear manufacturing ecosystem, BSCL has undertaken a comprehensive project to establish end-to-end infrastructure within its facility. This holistic approach encompasses the production of both raw materials and finished products, all conveniently located within a single, strategically positioned complex, he added.

Sonjoy Saha, project director of BSCL, envisions the company as a one-stop shop for footwear manufacturing, with an estimated cost of Tk800 crore. Anticipating the commencement of production by all companies by 2030, the project aims to generate around 25,000 new jobs upon completion.

Saha said currently, necessary equipment for shoe production is being imported from various countries, including China and India. Typically, around 50 items are required for shoe manufacturing, and importing these items can be a time-consuming process.

In an effort to streamline the process, Saha said foreign buyers often open Letters of Credit (LCs) for 40 to 50 days. Ordering products from China and awaiting their arrival takes time, leading production units in the region to meet the demand of local factories.

"Our initiative is expected to enhance efficiency, allowing production units in the area to fulfil the demand of both local and international markets. The goal is to have 28 establishments producing a variety of products," Saha said.

Saha emphasises that BSCL will not lease land but will provide leased buildings, with terms ranging from five to 15 years, tailored to the investor's needs. The aim is to facilitate an easy setup for production, where companies can focus on manufacturing products with the provided infrastructure.

Shoe City has a comprehensive plan for the diverse range of footwear and accessories that will be manufactured within its facility. These include leather shoes, sports shoes, jute or espadrilles shoes, safety shoes, children's shoes, ladies' fashion shoes, canvas shoes, school shoes, rubber shoes, Goodyear welted shoes, gags, wallets, and belts.

Shoe City will also foster the development of ancillary industries dedicated to producing essential footwear components, including outsoles, rubber, crepe, adhesives, synthetic materials, boxes, cartons, printing, labelling, tags, threads, moulds, dyes, toe puffs, counters, and tapes.

Shoe City said by using a shared services model, factories will be able to pool their resources together for the functions in the existing value chain to run cost-effective manufacturing operations.

The gap between manufacturers and suppliers will be mitigated as all the back-linkage industries will be located in one central location. By our estimates, the production cost of member factories will go down by 20 %, making their products very competitive in the world market, Sonjoy Saha said.

The project commenced in 2017 and has transformed the entire landscape, readying it for the establishment of factories. A new five-story building having over one lakh square feet is under construction. Five companies have already initiated production, and we have secured memorandums of understanding (MOUs) with an additional 15 companies from Europe, China, and Japan. These partnerships will facilitate the manufacturing of various shoe-making components, Saha said.

Shoe City moving forward despite challenges

"We are facing many challenges after the pandemic. The global economic crisis triggered by the Russia-Ukraine war has also impacted us.

Foreign companies that have expressed interest in setting up factories here are taking their time due to these uncertainties, including the upcoming Bangladesh national election. However, we are hopeful that several companies will commence production here by 2024," Saha said.

He said buyers in developed countries are emphasising transparent and sustainable supply chains. To meet these demands, foreign buyers are enforcing strict compliance standards across all organisations. They are particularly checking whether establishments possess Leather Working Group (LWG) certification.

"We are moving forward with our plans. Our Effluent Treatment Plant (ETP) is nearly 90% complete. We will provide ETP connections to any tannery or company that requires them. We will also establish a Green Resilience Zone, which will facilitate the acquisition of Leather Working Group (LWG) certification from the institute here. Additionally, we will maintain Renewable Energy Solutions," Saha added.

Companies in production now

Five-R Footwear Ltd: A full-fledged leather footwear manufacturing company producing approximately 2,000 pairs of leather footwear daily.

The company encompasses a leather finishing tannery with a capacity of 20,000 square feet per day and a sole manufacturing unit capable of producing 3,000 pairs per day. Five-R Footwear boasts an on-site bonded warehouse and an operational ETP that effectively decomposes various types of waste.

In addition, an Indian company is now manufacturing leather elastic, a Portuguese company is manufacturing shoe oil and a Canadian company is engaged in producing souvenir products incorporating cloth and leather.

"In addition to footwear manufacturing, we have also opened up our facility for garment production. This facility will specifically cater to manufacturers of leather-based souvenir items, such as handbags and gloves," Saha said.

In addition to the state-of-the-art manufacturing facilities, the leather industrial park will boast an array of comprehensive central facilities designed to cater to the needs of its occupants and foster a vibrant and well-rounded work environment.

These facilities include a training centre, restaurants, a childcare centre, a medical centre, a library, prayer rooms, a central administrative building, a central display sales centre, a central inspection centre, tasting laboratories, a central bonded warehouse, a fire station, a logistic and transportation company, a central security system company, accommodations hotel, grocery shops, and a central wastage management.

Sonjoy Saha said, "We are ready to provide all facilities including utilities [gas and electricity] to investors. We have constructed a rainwater reservoir and even a helipad. The government is giving us the necessary support."

Bangladesh has set a target of $10 billion in leather product exports by 2030. Currently, about $1.7 billion in leather products are exported annually. Sonjoy Saha hopes that Shoe City will help the country meet the export target.

 

[Bilal9]

RFL Footwear looks to raise non-leather exports to Africa​

Workers inspect the quality of shoes at a factory of RFL Footwear in Danga Industrial Park, Narsingdi. Due to shifting global preferences for environment and animal-friendly products, consumers are switching to non-leather products. Photo: Collected

RFL Footwear, a concern of PRAN-RFL Group, wants to expand its non-leather footwear business in African markets.

"Africa can be a good market for us in the near future. Our progress depends on the skills of our workforce. But we have to further reduce our production costs so that we can compete extensively with China," said Ahsan Khan Chowdhury, chairman of PRAN-RFL Group.

"We are trying every day to export our shoes to different parts of Africa. Besides, we have the opportunity to do well in the Middle Eastern and Indian markets," he added.

While pointing to how the government has set an export target of $80 billion by 2024, Chowdhury said the export sector must be diversified.
And footwear, especially non-leather footwear, could be one of the most important products in this regard.

Besides, due to increasing global preference for environment and animal-friendly products, consumers across the world are switching to non-leather products, he added.

RFL Footwear's products are currently being manufactured at its factory in Danga Industrial Park, Narsingdi, Dhaka. The company's footwear industry was set up at a cost of about TK 138 crore and currently employs around 2,500 people.

RFL Footwear manufactures sneaker, ladies' shoes, ladies' sandals and various items for children, Chowdhury said.

RFL started exporting non-leather footwear products in 2021. It exported non-leather footwear products worth about $4.7 million in fiscal 2021-22 and $7.2 million in fiscal 2022-23.

According to the Export Promotion Bureau, Bangladesh exported non-leather footwear worth $478 million in fiscal 2022-23 compared to $244 million in fiscal 2017-18.

At present, RFL is exporting non-leather footwear products through buyers of different countries. Among these, the main buyer is H&M.

Other buyers include Kappa, Umbro, Airness and Redtape, said Rahat Hossain Roni, chief operating officer of RFL Footwear.

RFL's footwear products are currently being exported to 37 countries through these buyers.

The company's export unit has a monthly production capacity of around six lakh pairs, with 10 production lines at two units for four different processes.

RFL Footwear has already obtained GRS and RCS certifications, which will play an important role in exporting its non-leather footwear products.

Most of the raw materials used in RFL's non-leather footwear are imported from China. But, now RFL is working extensively on backward linkage to produce the raw materials itself. As such, preparations are underway to produce the sole, mould and synthetics used in non-leather footwear soon, Hossain said.

If the raw materials that are currently imported can be produced in the country, the lead time for exporting products will considerably decrease.

Also, if the government provides facilities similar to those for the garment industry in establishing backward linkages, then investors will come forward and only then the necessary backward linkages for non-leather footwear will develop.

And if the necessary backward linkages are developed, buyers will be encouraged to buy more products from Bangladesh as the lead time will be reduced, he added.

In 2023, the global shoe market grew to about $400 billion. This market will be worth about $500 billion in 2027, according to industry people.

In fiscal 2022-23, footwear exports from Bangladesh were worth $1,180 million. Leather footwear accounted for $700 million of the sum while non-leather footwear contributed $480 million.

Currently, Bangladesh ranks 16th in global footwear exports.

China is at the top in this regard, catering to more than 60 percent of the global demand.

Hossain informed that RFL will soon move into manufacturing high-value non-leather footwear because they have huge demand worldwide.

Additionally, it is possible to earn a lot of foreign currency through it, he said.

RFL Footwear markets 50 percent of its products domestically and exports the rest.

As there is huge potential for export, about 80 percent of its production is planned to be exported. With this in mind, the company will soon add six more production lines, Hossain said.

Because of that, there are plans to invest about TK 100 crore in the future, he added.

 

[Malang]

Sir do you also make Shoes with Snake’s skin? They are expensive and worth a fortune in western countries. Catch all snakes including your corrupt politicians and make shoes with their skin

Malang

 

[Saif]

Catch all snakes including your corrupt politicians and make shoes with their skin

Malang

 

[Saif]

Can leather industry exploit its potential?

That the country's leather industry had immense potential is universally agreed. Similarly, the fact that it failed to flourish due to policy flaws and a lack of decisive actions to overcome some infrastructural constraints bedevilling the sector is undisputed. Now that the leather industry is faci

thefinancialexpress.com.bd

Can leather industry exploit its potential?​

FE

Published :​

Feb 14, 2024 21:35

Updated :​

Feb 15, 2024 21:43

That the country's leather industry had immense potential is universally agreed. Similarly, the fact that it failed to flourish due to policy flaws and a lack of decisive actions to overcome some infrastructural constraints bedevilling the sector is undisputed. Now that the leather industry is facing a tough time globally, the fragility of the footwear and leather goods sector at home is badly exposed. Had it not been mired by the decades of foot-dragging on relocation of tanneries from the capital's Hazaribagh to Savar Tannery Industrial Estate and then the installation of a defective central effluent treatment plant (CETP) there, quite a few footwear and leather goods manufacturers would have by now received the much vaunted Leather Working Group (LWG) certification. Notably, this certification opens the opportunity to export leather goods and footwear to markets in Europe and America. With just three factories earning the coveted LWG certification--- Apex Footwear (gold), ABC Leather Ltd and Riff Leather Ltd (silver) ---the industry naturally could not achieve the desired position next to the RMG in terms of garnering foreign exchange.


As part of diversification of the export basket, however, this had to be on the priority list. The country's pharmaceutical industry and leather industry are two leading candidates for taking on the mantle of the RMG in case the number one forex earner faced a reversal for some reason. But at a time footwear and leather goods are bogged down by lower demand worldwide, leather factories -- particularly the smaller and the medium ones among them -- are witnessing a sharp decline in export. Already handicapped by their limited market with no access to the high-end destinations, these factories now find a daunting challenge for their survival. The export of leather and leather goods declined by 14 per cent but that of footwear declined by 26 per cent between July and January of 2023-24. Since footwear production is more than leather goods, a bigger market slump for the former means the value addition has also suffered in the process.

It is exactly at this point the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) has been looking for ways to tide over the current crises. As part of pre-budget proposals, it has asked for a unified tax rate of 1.0 per cent on import of raw materials. This will reduce the lead time by 20 days, triggering a 50 per cent increase in export of their products, it claims. Currently, the bond management stands in the way of easy access to industrial inputs.

The proposal certainly has its merit because the manufacturers and exporters of leather and leather goods are not asking for too much when they also seek rationalisation of tax at source by reduction of the 1.0 per cent freight on board (FOB) value to 0.5 per cent. In the context of the January 30 circular by the Bangladesh Bank to the effect of slashing cash incentives for export of some key exportable items, the demand for tax holiday may hardly be entertained. But synthetic and fabric footwear along with chemicals and spare parts for CETP certainly deserve special considerations. If the objective is to give the leather industry a competitive edge in the global market, such concessions ought to be granted at least for a reasonable period.​

 

[Bilal9]

Non-leather sports shoe mfr. in Bangladesh, will source Adidas shoes from Bangladesh

 

[Saif]

MK Footwear to raise Tk 55cr by issuing bonds

After raising funds from the SME board of the Dhaka Stock Exchange (DSE), MK Footwear is going to secure funds amounting to Tk 55 crore by issuing non-convertible fully redeemable bonds.

www.thedailystar.net

MK Footwear to raise Tk 55cr by issuing bonds​

After raising funds from the SME board of the Dhaka Stock Exchange (DSE), MK Footwear is going to secure funds amounting to Tk 55 crore by issuing non-convertible fully redeemable bonds.

The Bangladesh Securities and Exchange Commission (BSEC) yesterday approved the bond at a meeting.​

​

The tenure of the bond will be eight years and its coupon rate will be the Six months Moving Average Rate of Treasury bill (SMART) and additional 2 percent.

The bond will be issued to institutional investors and high-net worth individuals through private placement. The offer price of each bond is Tk 10 lakh.

With the proceeds, the footwear company will meet its working capital demand.

Community Bank Investment is the trustee of the bond, while Alpha Capital Management is the arranger.

Last year, the company raised Tk 10 crore by issuing one crore shares and got listed on the SME board of the DSE.

MK Footwear PLC was incorporated in 2015. It produces and exports several types of leather and synthetic footwear.​

 

[Saif]

A shot in the arm for leather sector

Of the export sectors that did not perform well in the previous fiscal (FY2022-23), 'leather and leather goods' was one. The Export Promotion Bureau (EPB) data say that in FY23, this sector earned US$1.25 billion from exports which was 2.0 per cent less than that of the previous fiscal (FY22). In t

thefinancialexpress.com.bd

A shot in the arm for leather sector​

FE

Published :​

Mar 12, 2024 22:02

Updated :​

Mar 13, 2024 21:51

​

FE file photo

Of the export sectors that did not perform well in the previous fiscal (FY2022-23), 'leather and leather goods' was one. The Export Promotion Bureau (EPB) data say that in FY23, this sector earned US$1.25 billion from exports which was 2.0 per cent less than that of the previous fiscal (FY22). In the eight months between July and February of the current fiscal, the export earnings from this sector decreased by 14 per cent compared to those of the same period in the previous fiscal. Similarly, three other sectors including live and frozen fish, agricultural products and jute and jute goods also registered a decline in export. However, poor performance of the leather sector, which is the second biggest export earner after garment, is indeed concerning. Understandably, the decline in the demands for leather items in the European market, the main export destination of these products, had no doubt to do with wars and high inflation affecting that part of the world during the time in question. But that apart, the main hurdle before Bangladeshi leather items remained the tariff barrier raised by the export markets largely attributable to the failure (of local leather products) to meet the standards set by the Leather Working Group (LWG).

Notably, the LWG is a global non-profit platform dedicated to promoting best practices in leather sector. But meeting LWG's standards is an expensive option. The criterion set for leather and leather goods production facilities is to make them environment-friendly, which requires a lot of investment. Small wonder that our leather items fail to get fair price from western buyers as those are not LWG compliant. Against this backdrop, the government is learnt to have decided to reduce the tax deducted at source (TDS) on leather and leather goods export from the current 1.0 per cent by 50 per cent to 0.5 per cent.

The finance ministry has meanwhile directed the National Board of Revenue (NBR) to implement the order, to be effective till June 30, 2025, exclusively for leather and leather goods export. But, as reported, some pieces of good news are also there for companies paying below the usual 12 per cent year-end tax in addition to the uniform 1.0 per cent tax paid on their export value will also be allowed to pay source tax at a lower rate. In fact, the government move will prove to be a shot in the arm for the leather sector, especially after the reduction of cash incentive or subsidies on the export sector last January. As a result, leather was hit hard as the government decision practically eliminated all export incentives from this sector. Undeniably, the government move to cut TDS against leather items export will enable Bangladeshi leather and leather goods to be more competitive in the western markets. However, it is still going to be a stopgap measure until leather and leather goods from Bangladesh are fully LWG compliant and the only way to do that is by way of installing central effluent treatment plant (CETP) at the Savar Tannery Industrial Estate (STE). With only three factories of the country earning LWG certification, the leather sector has to surrender a large portion of its rightful share in export earnings. The reduction of tax at source has to be complemented by turning the CETP at Savar fully functional. Much depends on the CETP for the leather sector to become LWG compliant and vibrant. Thus the tannery industry can take its rightful place in country's economy, diversifying and enriching its export basket.​

 

[Saif]

Bangladesh: A rainmaker for Bata

Bangladesh is already one of the top 10 markets for Bata Shoe but its Chief Executive Officer Sandeep Kataria thinks the country offers further growth opportunities for the multinational company.

www.thedailystar.net

Bangladesh: A rainmaker for Bata​

Bata CEO Sandeep Kataria says Bangladesh can be the global sourcing hub for the footwear industry

Bangladesh is already one of the top 10 markets for Bata Shoe but its Chief Executive Officer Sandeep Kataria thinks the country offers further growth opportunities for the multinational company.

"So, it's a very important market for us."

Although the top official did not disclose Bangladesh's position among the top ten markets, he said it moved up in the ranking last year.

"This was partly because of what the company has done in Bangladesh, and partly because of the dollar impact on some of the countries," Kataria told The Daily Star in an interview in Dhaka last week during his visit to the country.

Bata Shoe started its operations in Bangladesh in 1962, nearly a decade before its independence.

"We have received a lot of love from the consumers of Bangladesh in the past 62 years. Still, we are seeing a lot of opportunities for growth in the country in the coming days."

Kataria said some of Bata Shoe's managers played a role during Bangladesh's struggle for Independence. "Therefore, our company has been very much part of Bangladesh's growth trajectory."

"We continue to look at this as a strategic market for us, not just for business, but also for sourcing from the country."

Sandeep Kataria, CEO of Bata Shoe Company

Kataria is a business and marketing leader with more than 25 years of experience in the consumer products and retail industry across developing and developed markets.

He worked for several international companies such as Vodafone India, Yum! Brands and Unilever, in different markets before joining Bata in 2017 as the CEO of Bata India.

An engineer from IIT-Delhi, he was appointed as the CEO of the Bata Shoe Organization in December 2020 with the task of transforming the footwear giant into a modern and contemporary brand for generations to come.

This time, he came to Bangladesh after a gap of two years and he was impressed by the massive change Bangladesh is witnessing in the infrastructure sector. The country has also maintained a steady economic growth and per capita income despite challenges at home and abroad.

Kataria thinks Bangladesh can be the global sourcing hub for the footwear industry.

"We already make a lot of shoes in our two big factories here. We also have some partners. We want to turn some of them into large, important, sourcing partners for our markets across the world. They can actually make shoes for the world, not just for Bangladesh."

One of the things that makes Bangladesh more interesting to Bata is the trading treaties it has with partner countries and the deals it is going to sign with them in the coming years.

Kataria thinks there are two more things that will allow that to happen.

One of them is the opportunity for the partners to be able to secure some of the raw materials that may not be easily available in Bangladesh. Therefore, there is a scope to look at the duty structure around raw materials.

The second issue is local entrepreneurs need to be ready to innovate as consumers always want new styles.

"So, partnering with us to innovate and bring in new styles and new trends to the market is always helpful."

The CEO terms Bangladesh as lucky since manufacturing costs are comparatively lower in the country.

"All of these factors will transform Bangladesh into a good sourcing hub for us."

Sales of Bata Shoe Bangladesh rose 1.3 percent year-on-year to Tk 754 crore in the January-September period of 2023. During the same period, profits rose 53 percent to Tk 42 crore.

Kataria also spoke about the recent situation of the footwear business in Bangladesh.

"It is similar to what is happening in many of the discretionary categories, whether it is apparel, footwear, or even eating out to some extent, since many consumers are tightening their belts."

The footwear business has recovered from the slowdown induced by the coronavirus pandemic. But the lingering impacts of the worldwide health crisis and the Russia-Ukraine war sent consumer prices as well as raw materials costs high globally, hurting the business growth.

"As higher inflation is putting pressure on the wallets of consumers, they are sometimes prioritising expenditures."

Although elevated consumer prices have affected the number of pairs sold, the value is going up because of inflation. Some consumers are ready to upgrade and get a better quality.

"But overall, there's a bit of a tightening of volume demand," Kataria said.

Shares of Bata Shoe (Bangladesh) also traded at the Dhaka Stock Exchange and were up 1 percent to Tk 1,000 yesterday. It provided a 330 percent interim cash dividend for the first nine months of 2023.

Kataria says one of the big things about Bata is it is more local and less multinational.

"If you ask a Peruvian, an Indonesian, or a Bangladeshi, they will probably tell you that Bata is a local company."

He, however, says one shoe does not fit all because of different weather conditions in different countries.

"So, you will have to provide consumers something that they want and suits the weather and the wallet. Therefore, what we've always tried to do is to make sure that there's a good mix of global ideas and trends and we get inspired by them and we share that locally."

Bata also gives local teams a lot of power to develop products.

"In Bangladesh, more than 85 percent of our shoes are actually manufactured by our own factories."

Speaking about sustainability, the CEO said the company is using alternative sources of energy wherever possible and trying to recycle products.

​

 

[Saif]

‘Leather export potential remains untapped’

Breaking News, International News & Multimedia

thedailynewnation.com

‘Leather export potential remains untapped’​

28 Mar 2024, 12:00 am

Tasnuba Akhter Rifa :

The leather and leather goods industry in Bangladesh has garnered the trust of both domestic and foreign buyers owing to its combination of low prices and high quality.
Nevertheless, its export potential remains largely untapped due to a lack of international standard certification.

In response, the National Board of Revenue (NBR) has implemented a reduction in source tax on leather and leather goods exports from 1% to 0.5% until June 30, 2025.

While this move is expected to provide some relief to entrepreneurs and potentially stimulate employment, industry insiders caution that it may not significantly bolster exports.

Experts emphasise that enhancing compliance within the sector is crucial to unlocking its full export capacity.

Foreign buyers insist on satisfactory working conditions, worker safety, and environmental standards before engaging with factories, necessitating compliance with government regulations and buyer-imposed rules.

Compliance not only ensures adherence to laws and policies but also guarantees benefits for workers and employees.

According to the NBR Chairman, environmental pollution stands out as the primary challenge in the leather and leather goods sector, hindering entrepreneurs from tapping into significant global markets. Improved compliance, he argues, would lead to an increase in exports of leather and leather goods.

“The main problem in the leather and leather goods sector is environmental pollution. That’s why entrepreneurs are not able to capture big markets around the world.
If compliance improves exports of leather and leather goods will increase.” said NBR Chairman.

Despite being the country’s second-largest export product, the leather and leather goods sector faces hurdles. In the current financial year (2023-24), it aims for exports totaling $13 billion.

However, exports during the first eight months (July-February) amounted to approximately $71 crore, marking a 14.38% decrease compared to the same period last year.

In the previous financial year (2022-23), exports reached $122 crore, down about 2% from the preceding year.

During a pre-budget discussion in February, the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) highlighted various challenges in the sector and proposed reducing the source tax on leather goods and footwear exports from 1% to 0.5%.

LFMEAB Senior Vice President Mohammad Nazmul Hasan expressed optimism to The New Nation regarding the government’s initiative, anticipating an increase in leather goods exports and the creation of new jobs.

However, he highlighted challenges such as decreased demand for these products in the international market and increased production costs in the domestic market, especially with a 45% rise in sea transportation costs due to fuel price hikes and Middle East conflicts.

Contrary to the reduction in incentives, Dr. Mahfuz Kabir, a Senior Research Fellow and economist at BIISS, argued that such measures wouldn’t facilitate market entry into Europe or other regions, attributing the sector’s export challenges primarily to compliance issues.

“There is no benefit in reducing the incentive in this sector. Even if we reduce it, we will not be able to enter the European or other markets.

We are not able to capture the market due to compliance issues.” said Dr. Mahfuz Kabir, BIISS Senior Research Fellow and Economist.

He emphasised environmental pollution as a significant hurdle, citing the incomplete functionality of the central effluent treatment plant (CETP) at the planned leather industrial city in Hemayetpur, Savar.

This pollution impedes tanneries from obtaining international standard certification, thereby hindering Bangladesh from fully capitalising on its export potential.

In order to sell leather and leather goods at a good price to international brands, one has to have the certification of the Leather Working Group (LWG), a global leather industry organisation.

It is known that only six establishments in Bangladesh have LWG certification.

Domestic entrepreneurs export leather and leather goods to markets where there is no brand value. Each leather processed in a non-LWG-certified factory in the country is being exported for a minimum of 45 cents to $1.60.​

 

[Saif]

Leather shipment recovers, fetches $100 million in 9 months

Leather exports rose 9.8% year-on-year in Jul-Mar of FY24

www.thedailystar.net

Leather shipment recovers, fetches $100 million in 9 months
Leather exports rose 9.8% year-on-year in Jul-Mar of FY24

The shipment of leather has started to revive as Bangladesh fetched $100.40 million from the sales of the semi-finished raw materials in July-March of 2023-24, data from the Export Promotion Bureau (EPB) showed.

The exports were up 9.8 percent from the identical period a year prior.

A spike in the import of semi-finished leather by China is helping local suppliers export a higher volume of the product.

According to industry insiders and exporters, China has started to import a significant quantity of semi-finished leather from Bangladesh to remain competitive in the US market by the way of keeping the production cost lower.

"Export orders for semi-finished leather from China have increased substantially in the last three to four months," Diponkar Tripura, owner of Life & Race Bangladesh, a manufacturer and exporter of leather and leather goods.

The dragging trade row between Washington and Beijing has brought about a positive impact on leather exports from Bangladesh.

Besides, the production cost in China has gone up in the last few years driven by a surge in labour wages, prompting manufacturers in the world's second-biggest economy to source raw materials from the South Asian nation.

Chinese companies import semi-finished leather from Bangladesh and process them in China before manufacturing finished products in Vietnam and Cambodia for the US markets, said Tripura.

If Chinese firms export products from China, the US importers will have to pay an elevated level of tariffs, which are comparatively higher than Vietnam and Cambodia, he said. "Therefore, they are importing raw materials from Bangladesh."

Besides, Chinese companies use imported raw materials to meet the demand for their domestic leather goods market, which was valued at $22 billion in 2022.

Bangladesh has 161 tanneries that process rawhides into finished leather. However, 98 percent of them are not compliant as per global standards, forcing local suppliers to sell semi-finished leather, said Tripura.

Arifur Rahman Chowdhury, general manager of ABC Footwear Industries Limited, said China is phasing out industries hazardous to the environment such as the initial processing of rawhides. "So, they import semi-finished leather from Bangladesh."

However, he said, the price of semi-finished leather is low in Bangladesh, making the country a lucrative sourcing destination for Chinese importers.

Although the exports of semi-finished leather are gaining pace and generating foreign currencies for the country, Bangladesh is, in reality, losing out since it could have earned more had it been able to export finished leather and finished goods produced from the local leather directly.

For that to happen, local processors will have to secure certification from the Leather Working Group (LWG), a global multi-stakeholder community committed to building a sustainable future with responsible leather.

A top official of a leather product exporter says the Bangladeshi firms that process world-class finished leather don't sell them in the local market since they don't receive cash incentives from the government.

The government provides a 12 percent cash incentive on the shipment receipts of semi-finished leather. Of the semi-finished leather produced in Bangladesh, 70 percent is exported, mainly to China.

The official says there is a scope to add value to the products sold abroad and then export them directly. Direct exports can earn as high as $5 billion for Bangladesh, he said.

A senior official of the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) said the global economy has begun recovering, which will raise the demand for luxury products like leather items.

"As a result, the orders for leather from Bangladesh will grow in the coming months and we will receive better prices as well."

Finished leather exports fetch less than one-third of footwear: one square foot of leather fetches only $0.60, according to the LFMEAB .

Bangladesh would have received at least $1.5 per square foot if the central effluent treatment plant in the tannery estate in Savar could treat all of the toxic chemicals released, said MA Awal, vice-chairman of the Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association.

Bangladesh produces 400 million square feet of leather annually, according to industry people. There are 165 footwear and leather factories in the country.​

 

[Saif]

CPD for nearly doubling tannery workers’ wages

Tannery workers in Bangladesh should get a minimum monthly wage of Tk 22,776 considering the current market conditions and high inflation in the country, according to the Centre for Policy Dialogue (CPD).

www.thedailystar.net

CPD for nearly doubling tannery workers' wages
Says current market and living conditions should be considered

Tannery workers in Bangladesh should get a minimum monthly wage of Tk 22,776 considering the current market conditions and high inflation in the country, according to the Centre for Policy Dialogue (CPD).

A study by the CPD revealed that a worker's food and non-food expenses stand at a combined Tk 33,478 per month in 2024, or Tk 20,564 and Tk 12,914 respectively.

A minimum wage of Tk 13,500 was fixed for workers of the export-oriented tannery industry in 2018.

"But the owners did not implement that," said Tamim Ahmed, a senior research associate at the CPD, during a discussion and media briefing on the new minimum wage for tannery workers at the CPD office in the capital's Dhanmondi yesterday.

The CPD recently surveyed 35 tanneries and 105 tannery workers in the BSCIC Hemayetpur Tannery Estate in Savar in partnership with OSHE Foundation and under coordination of the Leather Development Forum.

At least 16 percent of the surveyed tannery workers are receiving less than Tk 13,500 as monthly wages despite working in their respective positions for more than a year.

Meanwhile, 43 percent of them received less than Tk 15,881 per month despite having held their position for at least six years.

Around 59 percent of the surveyed workers indicated that they have zero awareness of any sort of grading system in regard to wages.

Also, 71 percent do not know about the minimum wage set by the government, the CPD found.

Under the current wage structure, there are no mechanisms for promotion from one grade to another. Hence, the issue of increments is crucial for this sector.

The survey said that other than the amount paid, deviations between factories were also observed in terms of timely payment of wages.

The lack of implementation of the minimum wage could be attributable to the weak monitoring of the Department of Inspection for Factories and Establishments (DIFE).

The CPD found that 46 percent of the surveyed tanneries had not undergone a single inspection till date.

Liaquat Ali Mollah, chairman (senior district judge) of the Minimum Wages Board for tannery workers, said the tannery owners would not be able to implement the CPD's recommendation.

However, a respectable minimum wage will be fixed through discussions with the owners and workers considering both sides' interests, he added.

Mollah also said working conditions in the tannery industry are hazardous for workers' health, so medical allowances should be included in wages to ensure their livelihood.

"If the workers enjoy sound lives, they will perform better and the owners will do well in business," he added.

Mollah suggested owners ensure that factories are compliant with industry regulations and said they could bargain with buyers for better prices, thereby providing reasonable wages to workers.

However, tannery owners feel that it is not possible to implement the minimum wage proposed by the CPD.

"Tannery owners are not doing well, so implementation of the CPD's proposal is not possible," said Md Shaheen Ahmed, chairman of the Bangladesh Tanners Association (BTA).

Besides, due to the increase in tariffs of electricity and gas, the cost of production has increased, he said.

On the other hand, he said they were being compelled to sell leather to non-compliant Chinese companies at low prices due to the non-compliance of tanneries at the Savar Tannery Industrial Estate.

Still, Ahmed assured they would introduce a reasonable and implementable salary structure following a tripartite discussion including owners, workers and the government.

Ahmed also said they are trying hard to avail Leather Working Group (LWG) certification for at least 10 factories within the next six months, which will help improve their bargaining power with European buyers.

Md Abul Kalam Azad, president of the Tannery Workers Union (TWU), stressed the need for compliant factories and changing the mindset of owners to sustain their business.

According to him, the leather sector has the potential to grow a lot as the required raw materials are easily available in the country.

"So, this industry should be protected at any cost," Azad said.

Md Abdul Malek, general secretary of the TWU, said the tannery industry is different from other industries as it is has some health risks since more than 100 chemicals are used.

"Therefore, we need to give protection to the workers," Malek added.

The session was moderated by Khondaker Golam Moazzem, research director of the CPD. SM Morshed, vice-chairperson of OSHE Foundation, and Md Mizanur Rahman, vice-chairman of the BTA, also addressed the discussion.​

 

[Bilal9]

The majority of future exports for Bangladesh shoe export sector is non-leather sneakers. New factories are being set up almost every month and compared to barely a few tears ago, non-leather sneaker and sports-shoe exports have doubled. If past history with other countries is any indication, it will double again in a couple more years. Winding down of non-leather sneaker exports from China is the reason. China is not subsidizing this sector any longer.



Hiking boots, snow. boots, steel toe working boots (though leather based) are also being made in Comilla and Chittagong export zones. Some boots are being supplied to the US Army.

 

[Saif]

Leather losing its shine in exports

Rising local value addition, poor compliance with international standards, and buyers shifting to other countries have thwarted exports of leather, which was once among Bangladesh’s three main export items.

www.thedailystar.net

Leather losing its shine in exports

Rising local value addition, poor compliance with international standards, and buyers shifting to other countries have thwarted exports of leather, which was once among Bangladesh's three main export items.

The relocation of tanneries from Hazaribagh in Dhaka to the Savar Tannery Industrial Estate (STIE) in 2017 and the severe fallout of the Covid-19 pandemic and Russia-Ukraine war are other major reasons for declining leather exports.

In the face of such challenges, leather exports have declined by more than half over the past decade.

In fiscal year 2022-23, leather exports amounted to $123.44 million, down sharply from $397.54 million in FY14, according to data from the Export Promotion Bureau (EPB).

In the July-May period of the outgoing fiscal year, leather exports stood at $125.72 million, EPB data showed.

The rise in value addition means the number of factories, be it for domestic or export purposes, has increased, thereby increasing domestic consumption of tanned leather.

The significant rise in consumption of tanned leather and subsequent value addition can also be gauged from Bangladesh's exports of leather and leather goods.

In FY15, exports of leather and leather goods amounted to $1.13 billion and it has stayed above the billion-dollar mark for the past decade.

In FY23, exports of leather and leather goods brought in $961.49 million.

Exports of jute, tea and leather, once considered the most valuable products of Bangladesh, have been fading either due to loss of competitiveness globally or owing to rising consumption in domestic markets.

For instance, in the case of tea, the consumption in the domestic market increased over the years. At the same time, jute has failed to grab a bigger share as it competes with low-priced plastic.

Even 25 years ago, leather contributed more than 75 percent of the total exports of leather and leather goods, according to Md Saiful Islam, former president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh.

But its share has now declined to nearly 13 percent, which indicates that local value addition has increased, he said.

Moreover, poor compliance with environmental standards in tanneries and the tannery estate at Savar is a major reason for lower exports of leather. Those factors also lead to lower prices from international buyers, Islam told The Daily Star over the phone.

Md Shakawat Ullah, general secretary of Bangladesh Tanners Association (BTA), echoed those sentiments.

He said local exporters cannot sell tanned hides to renowned international retailers in Europe, North America or other major destinations due to poor compliance at the STIE.

The poor compliance has barred tanners from obtaining a Leather Working Group (LWG) certification, a vital recognition for doing business, he said.

As a result, local exporters are having to send 65 percent of the tanned leather to China, which pays nearly 60 percent lower compared to international prices, he added.

To read the rest of the news, please click on the link above.​

 

[Saif]

Govt plans forming dedicated leather industry authority

The government has taken an initiative to establish a dedicated authority for the development and management of the leather industry, Bangladesh’s second-largest sector in terms of export earnings, with a focus on public and private enterprises.

www.thedailystar.net

Govt plans forming dedicated leather industry authority

Photo: Star Archive

The government has taken an initiative to establish a dedicated authority for the development and management of the leather industry, Bangladesh's second-largest sector in terms of export earnings, with a focus on public and private enterprises.

As a part of this, the Ministry of Industries published a draft of "Bangladesh Leather Industry Management Authority Act 2024" on its website on June 13 to avail feedback from stakeholders.

The move comes in response to demands from businesses for the creation of a dedicated authority under the Prime Minister's Office to diversify the country's export portfolio.

Prime Minister Sheikh Hasina had informed of the plans while inaugurating the Bangladesh Leather Footwear and Leathergoods International Sourcing Show in October last year.

Leather was once among Bangladesh's three main export items.

However, rising local value addition, poor compliance with international standards and a shift of buyers to other countries have led to leather exports declining by more than half over the past decade.

In fiscal year 2022-23, leather exports amounted to $123.44 million, down sharply from $397.54 million in FY14, according to data from the Export Promotion Bureau.

Bangladesh produces 400 million square feet of leather annually while there are 165 footwear and leather factories in the country, according to industry insiders.

According to the draft, the authority will be comprised of a chairman and three members while its main office will be in the Savar Tannery Industrial Estate.

The chairman will bear the rank of an additional secretary while the members of joint secretary, it said.

However, the draft also mentions that the authority will operate under an eight-member board, chaired by a secretary or senior secretary of the Ministry of Industries.

The members will include the chairpersons of the Bangladesh Small and Cottage Industries Corporation, Bangladesh Finished Leather, Leather goods and Footwear Exporters' Association and Bangladesh Tanners Association.

It will also include the director of the Institute of Leather Engineering and Technology under the University of Dhaka and representatives from the Ministry of Environment, Forest and Climate Change and the Ministry of Commerce.

Businesses have been demanding the formation of the authority for a long time, said Shaheen Ahamed, chairman of the Bangladesh Tanners Association, adding: "It would be great if it is under the Prime Minister's Office."

"…the problems of our sector will be identified very quickly, and it will be possible to solve those promptly. We have some observations…We will present them very soon," said Ahamed, also managing director of Anjuman Trading Corporation.​

 

[Saif]

Time-bound action plans being formulated for leather industry dev: industries secy

Senior secretary of the industries ministry Zakia Sultana on Monday informed that time-bound action plans were being formulated for the development of the leather industry...

www.newagebd.net

Time-bound action plans being formulated for leather industry dev: industries secy
Bangladesh Sangbad Sangstha . Dhaka 24 June, 2024, 22:38

Workers arrange salted rawhide in a pile at a tannery at Hemayetpur of Savar, on the outskirts of Dhaka on Monday. Like the previous year, rawhide of sacrificial animals was sold at throwaway prices across the country after Eid-ul-Azha, one of the biggest religious festivals of the Muslims, which was celebrated in the country on June 17. | Sony Ramany

Senior secretary of the industries ministry Zakia Sultana on Monday informed that time-bound action plans were being formulated for the development of the leather industry.

'In addition to the renovation and development of the existing Common Effluent Treatment Plant in Savar Leather Industrial City, initiatives have been taken to construct three more environmentally friendly CETPs,' she said.

Zakia Sultana said this while presiding over a workshop on 'Smart Bangladesh, Smart Industry: The Role of Stakeholders in the Development of Leather and Leather Products' at the industries ministry in the city, said a press release.

As per plan, Zakia Sultana said, if everything is implemented, it is expected that Leather Working Group certification of tanneries will be increased and the export of leather and leather products in the international market will also be increased.

At the workshop, former industries secretary and former commissioner of the Bangladesh Securities and Exchange Commission Md Abdul Halim delivered the keynote speech.​

 

[Saif]

Global market expands, Bangladesh lags behind

The price of rawhides fell drastically due to no rise in exports, traders claimed saying companies require LWG certification, but tanners cannot apply for the certification as pollution in the industrial park does not stop

en.prothomalo.com

Global market expands, Bangladesh lags behind
Shovongkor KarmakarDhaka
Updated: 24 Jun 2024, 09: 11

Photo shows a line of leather products at shop.Prohtom Alo file photo

The global market of leather and leather products has been expanding every year, but Bangladesh could not use its potential to expand exports in spite of having a huge domestic supply of rawhide. The export volume has been more or less in the same spot over the past seven years. On the one hand, low prices are contributing to the decaying of sacrificial animal hide every year; on the other hand, leather worth 16 billion taka is being imported to manufacture export-oriented leather products. The leather industry in Bangladesh is not developing because of pollution caused by the Hemayet leather industry estate.

Experts and people involved in the sector said it has been 21 years since the implementation of a planned tannery industry estate on a 200-acre of land in Hemayetpur of Savar, outskirts of capital Dhaka. A total of 154 tanneries were allocated land in the industry park and 142 of them are currently in operation. However, the common effluent treatment plant (CETP) is yet to go into full operation. Work on dumping yards for throwing hard wastes ha not started either, resulting in growing pollution now in the Dhaleshwari river after the Buriganga river.

The potential leather industry sector is paying the price of the failure to make the leather industry estate environment-friendly. The price of rawhide fell drastically due to no rise in exports, traders claimed saying companies require LWG certification, but tanners cannot apply for the certification as pollution in the industrial park continues. As a result, traders are forced to export leather to the Chinese traders at half price.

Leather Working Group (LWG) is a not-for-profit membership organization, working to create meaningful change across the global leather supply chain. LWG community works together in a pre-competitive way to make responsible leather production and sourcing a reality, the group said on its website.

The government, however, wants to increase export in this sector despite the dire situation of the leather industrial park. As part of this initiative, the National Board of Revenue (NBR) decreased tax at sources on the export of leather and leather products from 1 per cent to 0.50 per cent in March this year. The industries ministry moved to form a separate authority for proper management and development of the leather industry.

Asked, the research director at the non-government research agency Centre for Policy Dialogue (CPD), Khondaker Golam Moazzem told Prothom Alo that the challenge to environmental standards is having a negative impact on the export of rawhide and leather goods in the country. Currently, it is not possible to obtain LWG certification with the existing CETP, and that is very unfortunate, which is why the CTEP system must be restructured.

State of leather and leather goods export

Market research and consultancy firms say the global market of leather products has been expanding except for the coronavirus pandemic period. According to K-based Technavio and US-based CMI Consulting, the global market size of leather goods including shoes, sandals and bags has grown by 30 per cent to 242.70 billion US dollars in 2024 from 217.49 billion US dollars in 2016. The market size is predicted to rise to 552.90 billion dollars in 2033.

Exports of Bangladesh did not rise as much as the global market grew. According to data from the Export Promotion Bureau (EPB), earnings from exports of leather and leather-processed goods were at 1.23 billion US dollars in the 2016-27 fiscal and 1 billion dollars of the earnings were from the export of leather-processed goods. Exports, however, dropped in the following three years and rose slightly in the next two years before dropping again in the 2022-23 fiscal. Earnings from exports of leather and leather-processed goods were at 1.23 billion US dollars in the last fiscal and 830 million US dollars in the first 11 months of the current fiscal.

Bangladesh shares a small portion of the global market while other countries are moving ahead. In 2023, Vietnam exported leather and leather-processed goods worth 24 billion US dollars and India exported products worth 5.28 billion US dollars that means Vietnam's export of leather and leather goods is 19 times higher than Bangladesh and India's export is four times higher than Bangladesh's.

Less LWG-certified tanneries

Several global brands and footwear manufacturers including Nike, Adidas and Timberland formed the Leather Working Group (LWG) in 2005. It envisions a leather industry dedicated to sustainable and responsible business and works to achieve this through full supply chain transparency, minimal environmental impact, deforestation and conversion-free (DCF) supply chains. Currently, more than 1,000 brands and suppliers are members of the LWG.

According to data available on its website, 1,285 factories have obtained LWG certification so far with Italy dominating the list with 254 factories, followed by India (251), and China (206). Besides, Pakistan has 45 factories with LWG certifications.

To date, seven factories have received LWG certification in Bangladesh. They are ABC Leather Limited, Apex Footwear Limited, Austan Limited, Riff Leather Limited, SAF Industries Limited, Simona Tanning Inc. (Bangladesh) and Superex Leather Limited. Three of those factories manufactured finished leathers from rawhide.

It has been learned that the LWG stopped auditing factories in the tannery industrial estate in Hemayetpur as the estate failed to comply with the stop of pollution. LWG, however, runs audits once a factory installs its ETP, and Simona Tanning received the certification in this process.

Low price of rawhide

The price of cattle rawhide increased by 5-100 taka in this year's Eidul-Azha than the last year's price. Yet, rawhide was sold for 275-300 taka lower than the government fixed price with rawhide from large and medium-size cattle being sold for a maximum of 800-900 taka in the Posta area of Old Dhaka on Eid day. Prices dropped further outside Dhaka. Wholesalers are also reluctant to purchase goat hides with many people even discarding it.

Leaders of the Bangladesh Tanners Association said on 19 June that about 500,000 rawhide mostly goats decayed this year and about 9 million rawhide were processed with salt.

In 2013, the price of cattle rawhide was 85-90 taka per square foot during Eid-ul-Azha. Since then, rawhide prices continued to drop with prices falling drastically in 2019 when rawhide were thrown away roadside or buried underground, damaging rawhide worth about 2.42 billion taka.

On the one hand, rawhide sees low prices; on the other hand, the import of leather has been on the rise. Leathers worth about 9 billion taka were imported in 2018. According to the NBR, companies exporting leather goods imported 11,718 tonnes of various types of leather worth 16.46 billion taka in 2023.

Ways to develop tannery estate

The government relocated the tannery industry from Narayanganj to Dhaka's Hazaribag after acquiring land through a gazette issued on 3 October 1953. However, waste disposal systems were never set up there, and about 25,000 cubic meters of waste was disposed of in the Buriganga river per day in addition to throwing hard waste roadside and into ditches.

The tannery industrial estate project in Hemayetpur, Savar was taken in 2003 at an estimated cost of 1.76 billion taka in a bid to prevent pollution. The project cost was later revised to 10.79 billion taka with added spending on various sectors including CETP. A work order was issued in 2012 to build the CETP, but tanneries were relocated to Hemayetpur from Hazaribag days before the Eid-ul-Azha in 2017 without operating the CETP in full swing.

The CETP in Hemayetpur has a capacity of disposing of 25,000 cubic metres of liquid waste per day, but when tanneries process rawhides in full swing they produce more waste than CETP's capacity. Besides, chloride and biological oxygen demand (BOD) in l refined liquid has not been brought down to a certain limit yet.

Tanners said CETP and hard waste management are still incomplete in the ternary industrial park. The initiative was taken to ration the leather processing to control the additional pressure after Eid-ul-Azha like the last year. It reduces pollution but does not stop.

BTA general secretary Shakawat Ullah told Prothom Alo, "At first, we must move ahead with a goal to achieve 20 LGW certifications for the rapid improvement of the situation. Once that is done other things will follow gradually, but for this, initiative is necessary to make the CETP fully operational."

This report appeared in the print and online editions of Prothom Alo and has been rewritten in English by Hasanul Banna​

 

[Bilal9]

Leather losing its shine in exports

Rising local value addition, poor compliance with international standards, and buyers shifting to other countries have thwarted exports of leather, which was once among Bangladesh’s three main export items.

www.thedailystar.net

Leather losing its shine in exports
View attachment 6525

Rising local value addition, poor compliance with international standards, and buyers shifting to other countries have thwarted exports of leather, which was once among Bangladesh's three main export items.

The relocation of tanneries from Hazaribagh in Dhaka to the Savar Tannery Industrial Estate (STIE) in 2017 and the severe fallout of the Covid-19 pandemic and Russia-Ukraine war are other major reasons for declining leather exports.

In the face of such challenges, leather exports have declined by more than half over the past decade.

In fiscal year 2022-23, leather exports amounted to $123.44 million, down sharply from $397.54 million in FY14, according to data from the Export Promotion Bureau (EPB).

In the July-May period of the outgoing fiscal year, leather exports stood at $125.72 million, EPB data showed.

The rise in value addition means the number of factories, be it for domestic or export purposes, has increased, thereby increasing domestic consumption of tanned leather.

The significant rise in consumption of tanned leather and subsequent value addition can also be gauged from Bangladesh's exports of leather and leather goods.

In FY15, exports of leather and leather goods amounted to $1.13 billion and it has stayed above the billion-dollar mark for the past decade.

In FY23, exports of leather and leather goods brought in $961.49 million.

Exports of jute, tea and leather, once considered the most valuable products of Bangladesh, have been fading either due to loss of competitiveness globally or owing to rising consumption in domestic markets.

For instance, in the case of tea, the consumption in the domestic market increased over the years. At the same time, jute has failed to grab a bigger share as it competes with low-priced plastic.

Even 25 years ago, leather contributed more than 75 percent of the total exports of leather and leather goods, according to Md Saiful Islam, former president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh.

But its share has now declined to nearly 13 percent, which indicates that local value addition has increased, he said.

Moreover, poor compliance with environmental standards in tanneries and the tannery estate at Savar is a major reason for lower exports of leather. Those factors also lead to lower prices from international buyers, Islam told The Daily Star over the phone.

Md Shakawat Ullah, general secretary of Bangladesh Tanners Association (BTA), echoed those sentiments.

He said local exporters cannot sell tanned hides to renowned international retailers in Europe, North America or other major destinations due to poor compliance at the STIE.

The poor compliance has barred tanners from obtaining a Leather Working Group (LWG) certification, a vital recognition for doing business, he said.

As a result, local exporters are having to send 65 percent of the tanned leather to China, which pays nearly 60 percent lower compared to international prices, he added.

To read the rest of the news, please click on the link above.​

Although Leather-made shoes, bags and other items are losing their shine in exports, non-leather footwear exports are rapidly picking up steam.

Worldwide - leather shoes are only a fraction of the portion of non-leather shoes sold/exported.

 

[Saif]

Businesses want cold storages at marginal level for preserving rawhides

Rawhide traders and tannery owners want cold storage facilities at marginal level including in Natore, Chattogram and Dhaka to properly preserve, maintain and to prevent the rawhides of sacrificial animals from rotting. They said it is possible to eliminate the rawhide and leather storage crisis w

thefinancialexpress.com.bd

Businesses want cold storages at marginal level for preserving rawhides
BSS
Published :
Jul 07, 2024 20:59
Updated :
Jul 07, 2024 20:59

Rawhide traders and tannery owners want cold storage facilities at marginal level including in Natore, Chattogram and Dhaka to properly preserve, maintain and to prevent the rawhides of sacrificial animals from rotting.

They said it is possible to eliminate the rawhide and leather storage crisis within a short time by modernizing the unused storage facilities in different areas. In this way, a large number of sacrificial animal raw hides will be saved from spoiling every year and thus such assets of the country will be protected.

These opinions came up in the meeting of the standing committee on hide and skin, leather, leather goods and artificial leather of the FBCCI held at its Motijheel office on Sunday.

Chairman of the committee and former director of FBCCI Shaheen Ahmed presided over the meeting. Director of FBCCI and former president of the Metropolitan Chamber of Commerce and Industry (MCCI) Saiful Islam served as the director-in-charge of the committee, according to a press release.

Speaking at the meeting as the chief guest, Senior Vice President of FBCCI Md Amin Helali said that the government should strengthen the storage facilities in every district to save the raw hide.

"If necessary, the private sector can be involved in this initiative. Besides, cent per cent compliance of the leather industry should be ensured," he added.

Helali said compliance has to be ensured not only for the export market but also for the production of the local market.

He also gave special importance to increasing the competitiveness of the leather industry.

In order to ensure compliance, the leather industry has been shifted from Hazaribagh to Savar. Although a long time has passed, the Central Effluent Treatment Plant (CETP) is yet to become fully operational.

Besides, weaknesses also exist in solid waste management which is a big obstacle in getting international environmental clearance (Leather Working Group Compliance Certificate).

Standing Committee Director-in-Charge Md Saiful Islam said that this is one of the obstacles in the growth of the export of leather and leather products.

Chairman of the committee Shaheen Ahmed emphasized providing loans on soft terms to the small and medium businessmen of the leather industry centring the Holy Eid-ul-Azha.

He also drew the attention of the government to remove the existing non-tariff barriers in the export of leather to neighbouring countries including China.​

 

[Saif]

Compliance issues get in way of fully tapping leather export potential: Labour secretary

Bangladesh has yet to fully harness the potential of its leather goods exports mainly because of compliance issues, Labour and Employment Secretary AHM Shafiquzzaman has said. Leather can be a good item that can help reduce the country’s high dependency on one item—readymade garment, w

thefinancialexpress.com.bd

Compliance issues get in way of fully tapping leather export potential: Labour secretary
FE ONLINE REPORT
Published :
Sep 26, 2024 20:29
Updated :
Sep 26, 2024 21:42
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Bangladesh has yet to fully harness the potential of its leather goods exports mainly because of compliance issues, Labour and Employment Secretary AHM Shafiquzzaman has said.

Leather can be a good item that can help reduce the country’s high dependency on one item—readymade garment, which contributes more than 82 per cent of Bangladesh’s total export earnings, he said, adding that value addition to leather goods is 97 per cent while most of the raw materials used in garment-producing are imported, including cotton.

The secretary hoped that a checklist would help address compliance issues in line with buyer requirements.

The programme was organised by ‘Good Working Conditions in Tanneries (GOTAIN)’ project of German-based Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

During the workshop, it was revealed that most of the leather product exporters in Bangladesh have failed to obtain Leather Working Group (LWG) certification, an internationally recognised standard, due to the industry's inability to meet environmental and social compliance requirements.

As a result, many of Bangladesh's factories are unable to directly export leather products to markets like the European Union and America, which industry leaders believe is contributing to the decline in export earnings.

Although there was initial optimism that relocating tanneries from Hazaribagh to Savar, would improve conditions, industry leaders noted that the situation has not improved. The Central Effluent Treatment Plant (CETP) is still not fully operational, and leather waste continues to pollute local rivers, posing environmental risks.

Matiur Rahaman joint inspector general at Department of Inspection for Factories and Establishments (DIFE) and project director of GOTAN and Alina Moser advisor GOTAN, GIZ Bangladesh made two separate presentations on checklist and status quo of the developments of the tannery sector in Bangladesh respectively.

DIFE Inspector General Abdur Rahim Khan, Additional Inspector General Arif Ahmed Khan, and head of GOTAN project Md Firoz Alam, among others, spoke at the programme.​

 

[Saif]

Leather sector leaders seek CETP problem fixing forthwith

Leather-sector leaders Sunday urged the government to make the central effluent-treatment plant (CETP) functional to facilitate their business that holds huge export potential. Leaders of Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association (BFLLFEA) made the request at a

thefinancialexpress.com.bd

Leather sector leaders seek CETP problem fixing forthwith
Adviser assures steps for the industry
Published :
Oct 07, 2024 08:53
Updated :
Oct 07, 2024 08:53

Leather-sector leaders Sunday urged the government to make the central effluent-treatment plant (CETP) functional to facilitate their business that holds huge export potential.

Leaders of Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association (BFLLFEA) made the request at a meeting with finance adviser of the interim government Dr Salehuddin Ahmed at his secretariat office in the capital.

"Our demand is fix CETP. We are suffering because of government inaction," BFLLFEA adviser M A Rashid Bhuiyan told newsmen after the meeting.

He said during the shifting the tannery business from Hazaribag to Savar, the industrialists were told that all infrastructures were ready. "But it was an utter lie."

He said in the meeting with the finance adviser they elaborately explained the problems facing the factory owners in Savar Tannery Industrial Estate.

The adviser assured them of resolving the problems, Mr Bhuiyan said.

Association chairman Mohiuddin Ahmed Mahin said factories in Savar tannery estate are 100-percent export-oriented.

The government gave them licence for exporting, but due to incomplete CETP, the factory owners are forced to sell goods in China at lower prices than the international-market rates.

The finance adviser told newsmen that he heard the problems of the factory owners and will take necessary actions to resolve them.

"The leather sector has a great opportunity in the export diversification. But they have many problems," he said, adding that resolving their problems will also help fisheries and livestock secretors.

Former BFLLFEA chairman Syed Nasim Manzur attended the meeting, among others.​

 

[Saif]

CETP saga of Savar leather estate

It is quite intriguing that discussion is still on how to make the central effluent-treatment plant (CETP) at Savar tannery industrial estate functional after so many years. There is no point discussing how after much tug-and-pull between a previous government and tanners, the leather sector finall

thefinancialexpress.com.bd

CETP saga of Savar leather estate
Syed Mansur Hashim
Published :
Oct 08, 2024 21:40
Updated :
Oct 08, 2024 21:40

It is quite intriguing that discussion is still on how to make the central effluent-treatment plant (CETP) at Savar tannery industrial estate functional after so many years. There is no point discussing how after much tug-and-pull between a previous government and tanners, the leather sector finally moved from Hazaribagh area to the Savar leather estate in 2018. The CETP issue was never resolved and the export-oriented leather industry continued to suffer because it could not meet requirements demanded by importers. Many of the larger tannery companies had gone ahead and installed their own effluent-treatment-plants (ETPs), but for the majority of leather factories that was never an option.

Today, there is a new government in power. The interim government appears to be serious about making changes at policy level on issues like climate and adoption of environmentally-friendly processes. Hence, it is understandable that leaders of the Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association (BFLLFEA) has approached the finance advisor for measures to fix the CETP. This is understandable because the CETP issue has been festering for years on end under the previous governments. While all other infrastructure has been made ready, the CETP problem remains. But why? The factories located at the Savar tannery industrial estate are 100 per cent export-oriented.

The finance adviser has given assurance that CETP-related problems will be solved soon. Precisely how long "soon" is, of course, matters. As pointed out by BFLLFEA, the absence of a functioning CETP means that factories are forced to sell goods to China at much lower prices than the international market rates. But the government should understand something. It is more imperative than ever to try and diversify the export basket. Being dependent on just one industry, i.e. readymade apparels, exposes the country to undue external pressure, business or otherwise. Again, export diversification must happen to increase foreign exchange earnings, something that is in dire need today.

It is good that there is talk of forming a sub-committee that will look into solving the industry's problems expeditiously. As stated before, a non-operational CETP translates into Bangladeshi tannery companies selling their products at significantly lower rates in the global market and that is not helping either the industry or export earnings. A CETP would also allow for industry to move in to value-added product category, which would increase earnings manifold.

There has till now been a tug of war between past policymakers and industry on the question of cost of setting up a workable CETP. It could be argued that since the existence of CETP is mandatory to make dangerous effluents safe before discharge, it is the industry's responsibility to set it up. Many of tannery companies have set up individual ETPs to take advantage of the obvious export opportunities, but they are a very few in number. Most of the tanneries are small in size with limited financial capacity, which brought forth the question of a CETP in the first place.

If cost sharing becomes inevitable, then the government should go ahead and set it up on its own. At the same time, tannery companies may pay a certain percentage of the cost depending entirely on their export earnings. Since without a CETP, the leather industry as a whole, can never reach its full potential, the ministry concerned needs to come to a decision fast. Enough time has been wasted on the issue and it can only be hoped that the seemingly never-ending saga of a non-functional CETP can come to an end within an acceptable timeframe.​

 

[Saif]

Realising leather industry's potential

The allegation made by the entrepreneurs of the leather sector is serious. Contrary to the claim successive ministers of the past Awami League government put forward about readiness of the Savar Industrial Estate for relocation of tanneries from Hazaribagh, they complain that they were duped by lie

thefinancialexpress.com.bd

Realising leather industry's potential
Published :
Oct 09, 2024 22:03
Updated :
Oct 09, 2024 22:03
Share this news

The allegation made by the entrepreneurs of the leather sector is serious. Contrary to the claim successive ministers of the past Awami League government put forward about readiness of the Savar Industrial Estate for relocation of tanneries from Hazaribagh, they complain that they were duped by lies. There was mismanagement galore so far as the infrastructure development at the estate was concerned when they moved to the leather estate in 2018. Some of the infrastructural paucity they could manage on their own but the one outstanding concerned ---and it still does---the Central Effluent Treatment Plant (CETP). From day one, the CETP was far from operating at its full capacity. Strangely, it was still under construction when leather and leather goods manufacturers moved to the industrial estate. Then it started malfunctioning and the Chinese company responsible for its construction reportedly abandoned it without completing it.

The much hyped leather industrial estate thus proved to be a lame duck and the result was catastrophic. Massive environmental pollution from leather plants caused by dumping of solid waste and release of effluent from the leather factories was now shifted from Hazaribagh to Hemayetpur of Savar and from the Buriganga to the Dhaleswari respectively. Although the manufacturers and businesspersons of leather sector did not raise the issue of massive environmental pollution during a meeting with the finance and commerce adviser, they drew his attention to the commercial crises they have been facing since their relocation to the leather estate yet to be complete. Because of this open release of industrial waste and effluent, they are compelled to export leather at prices 70-80 per cent less than the international rate, they complain. They are paying the price for the then government's rash decision to make them move to the processing and manufacturing hub of leather and leather goods before it was equipped with the required facilities.

What, however, the manufacturers and traders of the sector did not mention is the difficulty created for obtaining Leather Working Group (LWG) certification on account of this environmental lacking. Only the LWG-certified leather factories can export shoes and leather products to international market. Reportedly, seven factories in the country have so far obtained LWG certification but only three of them produce finished leather goods. If the commercial constraints the majority of tanneries face could be overcome, the leather industry could live up to its billing of becoming the second highest foreign exchange earner.

Now that the problem is clearly identified and the entrepreneurs of the sector have brought the CETP issue to the finance and commerce adviser's notice and the latter has assured them of helping solve the problem, there are reasons to be optimistic about the industry's flourishment. If an efficient CETP can be set up at the leather estate, there will be a radical change in the environment there. But more needs to be done mainly on the part of the factories as well. They have to introduce advanced technology, particularly gears that ensure the safety of workers handling raw hides for processing. Their exposure to toxic chemicals must be limited to the minimum in order to keep them safe from the diseases caused from physical contact with those substances. The leather estate must be modern in the true sense of the term.​

 

[Saif]

Non-leather footwear on course to half-billion export club

Bangladesh’s synthetic and athletic footwear exports have been growing rapidly, emerging as a bright spot in the country’s export basket, which is heavily dominated by readymade garments.

www.thedailystar.net

Non-leather footwear on course to half-billion export club

Bangladesh's synthetic and athletic footwear exports have been growing rapidly, emerging as a bright spot in the country's export basket, which is heavily dominated by readymade garments.

In the decade preceding the end of fiscal year 2023-24, non-leather footwear exports ballooned 120 percent, jumping from $189 million to $416 million.

Such robust growth has continued into the current fiscal year, according to the Export Promotion Bureau (EPB).

In the first five months of FY25, non-leather footwear exports grew 41 percent year-on-year to $217.81 million, EPB data shows.

Exporters anticipate that the sector is poised to enter the half-billion-dollar club by the end of this fiscal year, joining leather footwear, jute and jute goods, home textiles and agricultural products.

"Western buyers are turning away from global footwear giant China to diversify their sourcing basket and avert looming large tariffs on Beijing from the White House," Riad Mahmud, managing director of Shoeniverse Footwear, said as he outlined reasons for the segment's growth.

Mahmud's footwear factory in Mymensingh, which employs around 1,700 people, supplies products to global brands such as Inditex, Aldi, Matalan and RedTape.

Although Bangladesh has long been trying to diversify its export basket, readymade garments still account for over 80 percent of total exports.

Mahmud said global brands are well aware of Bangladesh's advantages, such as competitive labour pricing, and its strong track record in apparel products, which encourages them to place footwear orders.

"Bangladeshi manufacturers can offer competitive prices for synthetic shoes compared to Vietnam due to lower labour costs. This has attracted globally renowned brands and new buyers," he added.

He said big brands had booked Shoeniverse's factory until March next year and buyers are now approaching him for future slots due to the possibility of the US imposing higher tariffs on Chinese products.

According to a market assessment by the Bangladesh Investment Development Authority (Bida), the rise in non-leather shipments is a result of increased work orders from well-known global brands like H&M, Puma, Decathlon, FILA and Kappa.

The main export destinations for these products are Spain, France, the Netherlands, South Korea, India, Italy and Germany.

BETTER THAN LEATHER

EPB data shows that Bangladesh's non-leather footwear exports have grown at an average annual rate of 23 percent in the past 10 years while the leather footwear industry has seen average growth of only 6 percent.

Leather footwear exports grew to just over $544 million in FY24 from $483.81 million in FY15.

However, despite the segment's enormous potential, synthetic shoe exporters receive a cash incentive of only 4 percent, Mahmud said, adding that the leather footwear sector was afforded 15 percent.

Though dominated by small-scale factories, the synthetic footwear segment is rapidly growing due to the relatively low investment required to set up an export-oriented production unit.

"It doesn't matter who enters the Oval Office after Trump since Bangladeshi manufacturers of synthetic footwear are well-positioned to capitalise on any tariffs on China in the meanwhile," Mahmud said.

SYNTHETIC FOOTWEAR THE FUTURE OF EXPORT

Jakaria Shahid, managing director of Edison Footwear Limited, believes the synthetic footwear industry will hold the key to export diversification in the future due to its rapid growth.

However, he added that top global brands like Nike and Adidas have not ventured into Bangladesh because manufacturers fail to maintain lead times.

Mohammad Shahadat Ullah, executive director of Maf Shoes, which exports to France and Germany, said, "Our exports have increased compared to last year as buyers are placing more orders."

Maf Shoes, a sister concern of TK Group, has a daily production capacity of over 50,000 pairs of shoes.

Kamruzzaman Kamal, marketing director of industrial conglomerate PRAN-RFL Group, said RFL began exporting non-leather footwear products in 2021. Currently, RFL footwear products are shipped to 37 countries.

"Given the huge global demand and potential for rapid growth, this sector can quickly emerge as a major export earner," he added.

BOTTLENECKS NEED TO BE REMOVED

Nasir Khan, chairman and managing director of Jennys Shoes, said Chinese companies are now lining up to invest in Bangladesh to avoid high tariffs in the US market.

"However, we are confused about our ability to seize this business opportunity due to the non-cooperation of customs officials," Khan alleged.

He said local manufacturers must now spend at least three and a half months to negotiate and secure an export order.

Khan claimed that despite the bright future of both leather and non-leather footwear, exports have been limited to $1 billion over the past two decades due to the non-cooperation of customs officials.

"The customs authorities receive, at best, Tk 50 crore in import duty from leather product manufacturers annually. Manufacturers must bring raw materials into bonded warehouses," he said.

But, if the National Board of Revenue (NBR) reduces the duty to a minimum and allows the import of raw materials without the bonded warehouse condition, government revenue could increase manifold, he added.

MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), said local leather footwear exports are struggling to grow due to the non-compliance of the tannery estate in Savar.

In contrast, he said, the synthetic footwear industry does not have such compliance requirements, leading to increased exports.

According to Maximize Market Research, a global market research and consultancy firm, the global athletic footwear market was valued at $68.26 billion in 2023.

The market is projected to grow at a compound annual growth rate of 7.11 percent from 2024 to 2030.​

 

[Saif]

Bangladesh to join 19th Cairo Int’l Leather and Shoes Fair starting Thursday

The three-day 19th Cairo Int’l Leather and Shoes Fair 2025 will begin in Cairo, Egypt on Thursday. The event will take place from January 23-25, 2025 at Cairo International Convention Center, Egypt where Bangladesh will be represented at Pavilion A52, said a press release issued on Wednesday

thefinancialexpress.com.bd

Bangladesh to join 19th Cairo Int’l Leather and Shoes Fair starting Thursday
UNB
Published :
Jan 23, 2025 01:00
Updated :
Jan 23, 2025 01:00

.
The three-day 19th Cairo Int’l Leather and Shoes Fair 2025 will begin in Cairo, Egypt on Thursday.

The event will take place from January 23-25, 2025 at Cairo International Convention Center, Egypt where Bangladesh will be represented at Pavilion A52, said a press release issued on Wednesday.

Leading Bangladeshi leather, footwear and leather goods companies such A.S Leather, Loretta Leather, Al Madina, Gardenia Footwear and Nobabee Footware will be participating in the premier international leather and accessories exhibition.

This Meet Bangladesh Sourcing Show (MBS) is introduced by Export Competitiveness for Jobs (EC4J) Project under the ministry of commerce to showcase the eminent leather, footwear (leather and non-leather) and leather goods sector of Bangladesh.

The primary objective of the EC4J project is to strengthen export market linkages for potential leather and footwear sectors by showcasing Bangladesh as a credible sourcing destination.

Bangladesh is a lucrative destination for the global buyer community having competitive workforce boosting exports, having duty-free market access to developed countries, being an established sourcing destination and by having availability of linkage industries.​

 

[Bilal9]

Do you research anything before passing wild comments? Stunting is higher in India compared to Bangladesh (especially high in Northern India BIMARU states (UP, Bihar, MP, Haryana etc.).

https://www.researchgate.net/publication/317578939_Role_of_Women's_Empowerment_in_Determining_Child_Stunting_in_Eastern_India_and_Bangladesh

India atop the world in number of stunted children, child workers: Study

India now has the highest number of children stunted due to malnutrition 48.2 million, equivalent to the population of Colombia, as per the latest global report on childhood. Also, 31 million of its...

www.thehansindia.com

 

[Sharma Ji]

Do you research anything before passing wild comments? Stunting is higher in India compared to Bangladesh (especially high in Northern India BIMARU states (UP, Bihar, MP, Haryana etc.).

View attachment 13590

View attachment 13591

chadd, yaar

troll kar raada

leave its of the behind

 

[Sharma Ji]

but @Bilal9 .. your Saif guy is a total cvnt

 

[Bilal9]

but @Bilal9 .. your Saif guy is a total cvnt

You guys both fly off the handle too much. I deleted both of your comments with foul language.

There is no difference in genetics. All differences are "manufactured" by people who want to rule you.

Hindu Muslim, isn't written on your collective foreheads. Brothers from another mother.

Same type of desis, same mentality. Now - can we all be nice and argue with respect?

 

[Saif]

Leather goods makers urge govt to clear unpaid cash incentives

Leather goods and footwear manufacturers and exporters have requested the government to clear the outstanding cash incentives. Leather goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) President Syed Nasim Manzur recently wrote to the Finance Division to take st

thefinancialexpress.com.bd

Leather goods makers urge govt to clear unpaid cash incentives
FE REPORT
Published :
Jan 30, 2025 00:39
Updated :
Jan 30, 2025 00:39

Leather goods and footwear manufacturers and exporters have requested the government to clear the outstanding cash incentives.

Leather goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) President Syed Nasim Manzur recently wrote to the Finance Division to take steps in this connection.

A Finance Division official told The Financial Express, "We have received the letter and are working on it."

The government currently owes the association's member factories more than Tk 3.0 billion as cash incentives, which has not been cleared due to a lack of funds, according to Manzur's letter.

He said the member factories are facing an emergency as there is a recession in the export markets, while buyers have stopped placing new orders due to Bangladesh's present law and order situation as well as image.

Besides, the production costs of various leather items have increased due to the high-priced raw materials, higher dollar prices, and fuel and transportation costs, Manzur noted.

On the other hand, the association members have to pay over Tk 2.22 billion as wages and bonuses to their workers before the upcoming Eid-ul-Azha holiday, he said.

To help the factory owners weather the storm, he requested the Finance Division to take prompt action and provide liquidity support.

Otherwise, the factory owners will fail to pay salaries and bonuses to their workers, which may trigger labour unrest, causing the country's law and order situation to deteriorate, read the letter.​

 

[Saif]

Built by expat brothers, rural factories send shoes abroad

In search of a better future, Md Selim and Hasanuzzaman Hassan migrated to the US roughly over three decades ago. The brothers eventually found success in construction business there but could not ignore the urge for contributing to their homeland.

www.thedailystar.net

Built by expat brothers, rural factories send shoes abroad

The non-leather shoes made in the factories of rural Rangpur are currently being exported to European and Indian markets. Photo: collected

In search of a better future, Md Selim and Hasanuzzaman Hassan migrated to the US roughly over three decades ago. The brothers eventually found success in construction business there but could not ignore the urge for contributing to their homeland.

Driven by a desire to make a difference in their country, they returned home, leaving behind a secure and comfortable life. Subsequently, they built cold storage facilities and footwear factories in northern Bangladesh.

The non-leather shoes made in these factories in rural Rangpur, around 300 kilometre northwest of capital Dhaka, are currently being exported to European and Indian markets. The export destinations include Poland, Turkey, the United Arab Emirates, Germany and Canada. The shoemaker also is now in process to send products to the United States.

Besides, the factories now employ nearly 3,000 workers, mostly women who were previously unable to contribute financially to their struggling families.

The brothers' journey of change began in 2007 when they returned to Bangladesh with Tk 3.5 crore for a potential investment. Although there were political and economic uncertainties at the time, they had a clear focus: to contribute to their home community meaningfully.

In 2009, they built a cold storage in Nilphamari for agri items like seeds and potatoes. In 2012, the brothers established their second facility at Mithapukur of Rangpur.

They soon turned to the footwear industry, a decision that would transform the local employment landscape for women.

In 2017, they built a shoe factory, BLING Leather Products Ltd, on 9.5 acres of land at Ghonirampur area of Taraganj.

Hassan said there were a lack of raw materials and a skilled workforce at the time, but their dream was to create employment in the locality and set an example as expatriates.

The second unit of the shoe-maker has been inaugurated recently.

But the beginning of their journey was far from easy. According to Hassan, they faced difficulties in management and technology, partly because their factory was far from the capital Dhaka.

Besides, the lack of shoe-making and exporting experience was another challenge.

By 2020, the brothers managed to start shoe production, primarily churning out 300 pairs per day. In 2021, the firm entered the global market.

Hassan said they earned Tk 320 crore from the shipment of synthetic shoes to Europe and India in last fiscal year 2023-24.

Meanwhile, in 2023, Selim passed away after suffering from age-related complications for years.

"Managing the business in such challenging times was difficult," said his younger brother Hassan.

Last Friday, Managing Director and CEO of Rupali Bank Kazi Md Wahidul Islam inaugurated the second unit of BLING Leather. To ensure international standards, the company has sourced machinery from Taiwan and Italy.

Rupali Bank is financing Tk 90 crore to expand the firm's production capacity.

In terms of local employment, the new unit marks another milestone. Currently, the two factories employ around 2,900 workers.

Hassan said the production lines have helped reduce unemployment in the area, providing stable incomes for families that once struggled to make ends meet.

"Just five or six years ago, men in the area had to leave in search of work while women remained unemployed. Today, the scenario has changed dramatically," he recalled.

With the second unit now operational, some 15,000 pairs of shoes are being produced daily. By 2026, Hassan said they aim to increase production to 50,000 pairs per day.

Hamida Khatun, a worker at BLING Leather Products Ltd, said she started working at the factory more than a year ago.

"Before this job, my family depended solely on the income of my husband, who is a rickshaw-van puller. Now, I earn Tk 10,000 per month, and our financial condition has improved," said Khatun.

"I feel empowered knowing that I contribute to my family's well-being," she added.

After four years of international market entry and latest expansion, BLING Leather now aims to accomplish an export target of Tk 700 crore by the end of 2028.

But for Hassan, life is not just about gains. "Rather, it's about contributing to the nation meaningfully," he said.​

 

[Saif]

https://www.thedailystar.net/business/news/footwear-sector-offers-lucrative-investment-opportunities-bida-3826941

Footwear sector offers lucrative investment opportunities: Bida
Sustaining growth and enhancing competitiveness are key challenges

Bangladesh's footwear sector is at a turning point, offering lucrative investment opportunities in both the leather and non-leather segments. However, challenges in sustaining growth and enhancing competitiveness remain, the Bangladesh Investment Development Authority (Bida) highlighted in a newsletter released yesterday.

"We see huge potential in this sector. If sufficient facilities are provided, the industry will take off and become a major export earner," said Shah Mohammad Mahboob, an executive member of Bida.

He added that they were working to negotiate with the National Board of Revenue to provide the necessary facilities to attract investment in this sector.

According to Bida, the rise of non-leather footwear—driven by changing consumer preferences and environmental concerns—is opening new investment opportunities, even outpacing the leather footwear sector in terms of growth over the past decade.

"We see huge potential in this sector. If sufficient facilities are provided, the industry will take off and become a major export earner," said Shah Mohammad Mahboob, an executive member of Bida

Referring to data from the Export Promotion Bureau (EPB), Bida said non-leather footwear exports grew by 120 percent over the last decade, far exceeding the 6 percent growth rate of leather footwear during the same period.

In the first seven months of FY25, non-leather footwear exports rose by 40.11 percent year-on-year to $318.09 million and are expected to exceed half a billion dollars by the end of the fiscal year.

However, while Bangladesh is the eighth-largest footwear producer in the world, leather goods and footwear remain the dominant force, generating $1.6 billion in exports last fiscal year.

Riad Mahmud, managing director of Shoeniverse Footwear Ltd., a concern of the National Polymer Group, said this offers great potential.

"If any corporate entity makes a major investment in the non-leather footwear sector, it will be a profitable venture," he said.

According to him, Bangladesh has only 15 compliant non-leather shoe factories, which require a capital investment of around Tk 35 crore to set up—posing a barrier to market entry.

Bida also pointed out that many tanneries and footwear factories struggle to meet global environmental and labour standards.

Mahmud further highlighted a shortage of skilled workers and complexities in customs procedures during the import of raw materials and shipment of products.

Hasanuzzaman Hassan, chairman of BLING Leather Products Ltd., a non-leather shoe factory based in rural Rangpur, said he now exports to Poland, Turkey, the United Arab Emirates, Germany, India, and Canada.

His company started shoe production in 2020, initially producing 300 pairs per day. In 2021, the firm entered the global market.

He envisions a promising future for synthetic footwear, stating that his company earned Tk 320 crore from synthetic shoe exports last fiscal year.

However, despite its strong performance, Bangladesh's footwear industry faces several challenges that must be addressed, Bida highlighted.

The lack of a domestic supply chain for synthetic materials increases production costs and lead times, affecting global competitiveness. Meanwhile, inefficiencies in customs clearance, inadequate port facilities, and shipment delays create difficulties for exporters.

The industry also requires specialised labour, but a lack of training programmes is hampering efficiency.

Furthermore, small and medium enterprises (SMEs), which make up a large portion of the industry, struggle with high interest rates, strict loan conditions, and limited access to financial support—posing major challenges to the growth of small-scale factories.

To sustain growth and remain competitive, the focus must be on policy reforms and investment, Bida recommended.

It suggested developing a bonded warehouse system to reduce dependence on imported raw materials and improving logistics and customs processes to enhance export efficiency.​

 

[Saif]

Allow 'free of cost' raw material imports

The Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) on Tuesday urged the government to allow 'free of cost' import of raw materials, similar to the facility provided to the textile sector. Under the ready-made garment industry, factories are provided

thefinancialexpress.com.bd

Allow 'free of cost' raw material imports
Leather goods, footwear manufacturers urge govt
FE REPORT
Published :
Mar 12, 2025 00:59
Updated :
Mar 12, 2025 00:59

The Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) on Tuesday urged the government to allow 'free of cost' import of raw materials, similar to the facility provided to the textile sector.

Under the ready-made garment industry, factories are provided with the facility to import raw materials sent by buyers 'free of cost' for the execution of export orders. However, the factories under LFMEAB are deprived of this benefit.

The association also demanded the reinstatement of the 12 per cent cash incentive for exports, following a decline in shipments in recent years.

The demands were placed at the 'Pre-Budget Consultation to Prepare for the National Budget for the Fiscal Year 2025-2026 with a Focus on Tax Reforms, Customs Duties, and Value-Added Tax (VAT),' organised by the National Board of Revenue (NBR) at its Agargaon office in the city.

NBR Chairman Md Abdur Rahman Khan presided over the session, where representatives from the Bangladesh Tanners Association, Bangladesh Freight Forwarders Association, Bangladesh Ceramics Manufacturers and Exporters Association, the Federation of Bangladesh Custom Clearing and Forwarding Agents Association, the Intending Association of Bangladesh, the Shipping Agents Association of Bangladesh, and other trade bodies presented their proposals.

LFMEAB President Mohammed Nazmul Hassan placed their demands, which included a rebate on source tax applied to the export cash subsidy, currently set at 10 per cent.

The association also called for tax rebate on import of spare parts and essential machinery, similar to the facilities available to the textile sector, to boost exports and reduce business costs.

Meanwhile, the Bangladesh Tanners Association urged the government to reinstate its 10 per cent cash subsidy.

The association's secretary, Mizanur Rahman, also requested a reduction in tax deduction at source (TDS), currently at 3.0 per cent, by classifying the leather sector as part of the agricultural industry.

The association argued that such incentives could help increase raw leather prices during the Eid-ul-Azha.

Besides, ceramics manufacturers demanded removal of the 15 per cent supplementary duty at the production stage.

They also called for elimination of the 10 per cent supplementary duty on sanitary products.

Moynul Islam, president of the Association, proposed that taxes on imported raw materials such as China Clay and Block Clay be imposed based on the actual usable quantity, considering that 35-40 per cent of these materials are lost due to moisture and waste. Bangladesh Freight Forwarders Association President Kabir Ahmed claimed that licensing of new freight forwarding companies has almost come to a halt.

He also emphasised that foreign companies engaging in joint ventures with local firms should be required to collaborate with Bangladeshi freight forwarders instead of choosing partners at their discretion, to strengthen local trade.​

 

[Bilal9]

The govt. first of all has to decide whether it actually wants a robust shoe mfg. sector which is seen in India, Indonesia and Vietnam nowadays. After garments this was going to be the next big thing in Bangladesh - but for idiot bureaucrats and bankers who were clueless and always wanted to throw their collective weights around with red tape, we have now suffered for twenty years. The time for the govt. is to move now.

The lack of a domestic supply chain for synthetic materials

This is policy driven, specifically import tariffs. I don't know what these Govt. amla idiots think, but there is no raw material import duty for show mfg. components in Vietnam.

The industry also requires specialised labour, but a lack of training programmes

We need to go to Taiwan and Korea (maybe China as well) and hire their shoe factory supervisors, retired ones are OK too. Some transfer of expertise will be needed to get to world-class standard for shoe exports, these Chinese, Koreans and Taiwanese experts must be paid handsomely and their incomes should be repatriable without any sort of income tax as a special benefit to grow this sector.

SMEs), which make up a large portion of the industry, struggle with high interest rates, strict loan conditions, and limited access to financial support

There should be minimal barrier to getting low-interest, easy-term loans for setting up export-based shoe factories. Maybe the Grameen peer-trust loan philosophy can be applied.

It suggested developing a bonded warehouse system

Absolutely, just like in the garments sector. Nothing wrong with it.

The Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) on Tuesday urged the government to allow 'free of cost' import of raw materials,

That is a "stitching-cost basis" contract. The other one, which is a back-to-back L/C is equally valid. But there should be local warehouses to minimize time spent in importing raw materials which is a 30 day latency. Maybe raw materials can be air freighted from China under special low-cost freight arrangements.

 

[Bilal9]

Non-leather footwear on course to half-billion export club​

Bangladesh's synthetic and athletic footwear exports have been growing rapidly, emerging as a bright spot in the country's export basket, which is heavily dominated by readymade garments.

In the decade preceding the end of fiscal year 2023-24, non-leather footwear exports ballooned 120 percent, jumping from $189 million to $416 million.

Such robust growth has continued into the current fiscal year, according to the Export Promotion Bureau (EPB).

In the first five months of FY25, non-leather footwear exports grew 41 percent year-on-year to $217.81 million, EPB data shows.

Exporters anticipate that the sector is poised to enter the half-billion-dollar club by the end of this fiscal year, joining leather footwear, jute and jute goods, home textiles and agricultural products.

"Western buyers are turning away from global footwear giant China to diversify their sourcing basket and avert looming large tariffs on Beijing from the White House," Riad Mahmud, managing director of Shoeniverse Footwear, said as he outlined reasons for the segment's growth.

Mahmud's footwear factory in Mymensingh, which employs around 4,700 people, supplies products to global brands such as Inditex, Aldi, Matalan and RedTape.

Although Bangladesh has long been trying to diversify its export basket, readymade garments still account for over 80 percent of total exports.

Mahmud said global brands are well aware of Bangladesh's advantages, such as competitive labour pricing, and its strong track record in apparel products, which encourages them to place footwear orders.

"Bangladeshi manufacturers can offer competitive prices for synthetic shoes compared to Vietnam due to lower labour costs. This has attracted globally renowned brands and new buyers," he added.

He said big brands had booked Shoeniverse's factory until March next year and buyers are now approaching him for future slots due to the possibility of the US imposing higher tariffs on Chinese products.

According to a market assessment by the Bangladesh Investment Development Authority (Bida), the rise in non-leather shipments is a result of increased work orders from well-known global brands like H&M, Puma, Decathlon, FILA and Kappa.

The main export destinations for these products are Spain, France, the Netherlands, South Korea, India, Italy and Germany.

BETTER THAN LEATHER

EPB data shows that Bangladesh's non-leather footwear exports have grown at an average annual rate of 23 percent in the past 10 years while the leather footwear industry has seen average growth of only 6 percent.

Leather footwear exports grew to just over $544 million in FY24 from $483.81 million in FY15.

However, despite the segment's enormous potential, synthetic shoe exporters receive a cash incentive of only 4 percent, Mahmud said, adding that the leather footwear sector was afforded 15 percent.

Though dominated by small-scale factories, the synthetic footwear segment is rapidly growing due to the relatively low investment required to set up an export-oriented production unit.

"It doesn't matter who enters the Oval Office after Trump since Bangladeshi manufacturers of synthetic footwear are well-positioned to capitalise on any tariffs on China in the meanwhile," Mahmud said.

SYNTHETIC FOOTWEAR THE FUTURE OF EXPORT

Jakaria Shahid, managing director of Edison Footwear Limited, believes the synthetic footwear industry will hold the key to export diversification in the future due to its rapid growth.

However, he added that top global brands like Nike and Adidas have not ventured into Bangladesh because manufacturers fail to maintain lead times.

Mohammad Shahadat Ullah, executive director of Maf Shoes, which exports to France and Germany, said, "Our exports have increased compared to last year as buyers are placing more orders."

Maf Shoes, a sister concern of TK Group, has a daily production capacity of over 50,000 pairs of shoes.

Kamruzzaman Kamal, marketing director of industrial conglomerate PRAN-RFL Group, said RFL began exporting non-leather footwear products in 2021. Currently, RFL footwear products are shipped to 37 countries.

"Given the huge global demand and potential for rapid growth, this sector can quickly emerge as a major export earner," he added.

BOTTLENECKS NEED TO BE REMOVED

Nasir Khan, chairman and managing director of Jennys Shoes, said Chinese companies are now lining up to invest in Bangladesh to avoid high tariffs in the US market.

"However, we are confused about our ability to seize this business opportunity due to the non-cooperation of customs officials," Khan alleged.

He said local manufacturers must now spend at least three and a half months to negotiate and secure an export order.

Khan claimed that despite the bright future of both leather and non-leather footwear, exports have been limited to $1 billion over the past two decades due to the non-cooperation of customs officials.

"The customs authorities receive, at best, Tk 50 crore in import duty from leather product manufacturers annually. Manufacturers must bring raw materials into bonded warehouses," he said.

But, if the National Board of Revenue (NBR) reduces the duty to a minimum and allows the import of raw materials without the bonded warehouse condition, government revenue could increase manifold, he added.

MA Razzaque, chairman of Research and Policy Integration for Development (RAPID), said local leather footwear exports are struggling to grow due to the non-compliance of the tannery estate in Savar.

In contrast, he said, the synthetic footwear industry does not have such compliance requirements, leading to increased exports.

According to Maximize Market Research, a global market research and consultancy firm, the global athletic footwear market was valued at $68.26 billion in 2023.

The market is projected to grow at a compound annual growth rate of 7.11 percent from 2024 to 2030.

 

[Saif]

Leather sector lagging 30yrs behind: experts

Speakers at a discussion meeting on Sunday said that the Bangladesh leather industry has been going through a tough situation over the past 10 years...

www.newagebd.net

Leather sector lagging 30yrs behind: experts
United News of Bangladesh . Dhaka 27 April, 2025, 22:49

New Age file photo

Speakers at a discussion meeting on Sunday said that the Bangladesh leather industry has been going through a tough situation over the past 10 years.

The types of leather that were produced in Bangladesh 20 to 30 years ago are still being produced without any change. There is no development in this regard. So the leather sector is lagging behind, they said.

‘In 2012, the revenue from the leather sector was US $1.13 billion. In 2024, it decreased to $970 million,’ the discussion was told on the occasion of ‘World Leather Day 2025’ at the Leather Industry City in Harindhara, Savar, on Sunday.

Despite having potential and enough sources of rawhide in the country, other industries are developing, but the picture is the opposite in the leather Industries, they said.

The meeting was organised by Footwear Exchange at the seminar hall of Dhaka Tannery Industrial Estate Waste Treatment Plant Company Limited in Shilpanagar with the theme ‘Beyond the Surface: It’s Our Time to Be Visible, Vocal and Responsible’.

The meeting was moderated by Golam Shahnewaz, managing director of DTIEWTPCL, and the chief guest was Bangladesh Tanners Association (BTA) Chairman Shaheen Ahmed. Apex Tannery Chief Production Officer Salauddin Mahmud Khan, Managing Director of Marson Tannery Tariqul Islam Khan were the special guests.

Leather Engineers and Technologists Society of Bangladesh President Mohammad Ali, Leather Products and Footwear Manufacturers and Exporters Association (LFMEAB) Director Mushfiqur Rahman and others were present at the event.

BTA Chairman Shaheen Ahmed said that coordination between various industry-related associations is essential to overcome the crisis in the leather industry.

‘The institutions are not fully independent. The way BSCIC officials are running the industries ministry, it is being run the same way. In Kolkata, the owners of the leather industry institutions are the main stakeholders and shareholders. But in Bangladesh, it is completely the opposite,’ he said.

‘This needs to be fixed, the power of the association needs to be increased. The shares of tannery owners need to be increased,’ he added.

Speaking at the event, Mohammad Ali said that leather engineers have a big role in the development of the leather sector in Bangladesh. That role is not being played properly.

LFMEAB Director Mushfiqur Rahman said, ‘We are far behind in the demand for leather or footwear all over the world. We are always committed to the development of leather and leather products.’​

 

[Saif]

Leather exports drop 64% in 10 years as CETP woes linger

The country’s leather exports have plunged by over 64 percent in the past decade, due mainly to the failure to complete the Central Effluent Treatment Plant (CETP) at the Savar Tannery Estate -- a key requirement for obtaining international environmental certifications.

www.thedailystar.net

Leather exports drop 64% in 10 years as CETP woes linger

The country's leather exports have plunged by over 64 percent in the past decade, due mainly to the failure to complete the Central Effluent Treatment Plant (CETP) at the Savar Tannery Estate -- a key requirement for obtaining international environmental certifications.

In the fiscal year (FY) 2014, the country exported leather worth $397 million. By FY2024, that figure had fallen to just $142.54 million.

Leather exporters described the stalled CETP as the single biggest hurdle to achieving Leather Working Group (LWG) certification, the globally recognised benchmark for environmental compliance in production.

Without LWG certification, Bangladeshi leather remains locked out of premium international markets, said Syed Nasim Manzur, president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB).

Leather exporters described the stalled CETP as the single biggest hurdle to achieving Leather Working Group (LWG) certification, the globally recognised benchmark for environmental compliance in production

"Without LWG certification, we are invisible to major global buyers who demand verifiable sustainable sourcing" said the association president at an event organised by the Dhaka Chamber of Commerce and Industry (DCCI) in the capital yesterday.

Following years of resistance, tanneries were relocated from Hazaribagh area in Dhaka to the capital's outskirts Savar in 2017.

The move was meant to improve environmental standards, but the CETP still remains incomplete and largely non-functional.

Unable to meet the strict compliance demands of leading global brands, Bangladesh consequently sells leather at cut-price rates to Chinese intermediaries.

LFMEAB President Manzur urged the government to take immediate action, including appointing an internationally accredited operator for the CETP, offering green financing, and extending the same policy support enjoyed by the readymade garment sector.

That includes bonded warehouse facilities and duty-free imports of machinery. Manzur said that a fully functioning CETP could potentially double leather exports.

As international markets increasingly prioritise sustainability, he called for rapid reforms to establish Bangladesh as a responsible producer.

"The local leather sector can thrive in the post-LDC era," Manzur added, "but only if we deliver on compliance, starting with a fully operational, LWG-ready CETP."

Speaking at a separate focus group on post-LDC export strategies, Adilur Rahman Khan, adviser to the Ministry of Industries, echoed this urgency.

With Bangladesh set to graduate from least developed country (LDC) status by 2026, the adviser said the country must prepare fast.

Despite earning around $1.2 billion annually from leather, leather goods and footwear, Bangladesh accesses only a sliver of the $420 billion global leather market, Khan added.

"Achieving the government's $12 billion export target by 2030 will require bold reforms, international certification and a modernised value chain," he said.

Md Saiful Islam, chairman of the Bangladesh Small and Cottage Industries Corporation (BSCIC), said that the Savar CETP can currently treat only 14,000 cubic metres of effluent daily.

It is well below the 32,000 to 35,000 cubic metres required during the peak season after Eid-ul-Azha, the second largest festival for Muslims involving the ritual of sacrificing animals.

Islam said six individual Effluent Treatment Plants (ETPs) have been approved, two of which are nearing completion. Another 8 to 10 are in the pipeline, expected to add an extra 8,000 to 10,000 cubic metres of capacity.

According to the BSCIC chairman, a technical committee has been tasked with upgrading the CETP's capacity to 25,000–26,000 cubic metres, with long-term plans to reach 40,000. This effort is backed by a European Union-supported project.

Md Hafizur Rahman, administrator of the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI), said the leather sector is struggling to attract foreign investment and buyers because of its lack of certification.

He said it was unclear how quickly these challenges could be resolved, but stressed that the issues surrounding the CETP must be addressed without further delay.

Nazneen Kawshar Chowdhury, additional secretary of the WTO wing at the Ministry of Commerce, said the post-LDC era would come with significant challenges, but also with opportunities.

She urged the private sector to prioritise compliance with environmental and labour standards and said the government was open to collaboration in enhancing the CETP's capacity.

Md Ariful Haque, director general of the Bangladesh Investment Development Authority (Bida), said the country's economy has the potential to double in size over the next 15 years, but achieving this will require close coordination between public and private sectors.

To support local businesses and spur growth, Haque said Bida is stepping beyond conventional approaches and directly engaging with foreign investors, which he believes will bring promising results.

The event was moderated by DCCI President Taskeen Ahmed. It was also addressed by Md Nurul Islam, CEO of the Bangladesh Tanners Association (BTA); Ibnul Wara, managing director of Austan Ltd; Md Nasir Khan, managing director of Jennys Shoes Ltd; Ziaur Rahman, managing director of Bay Group; and M Abu Hurairah, former vice-president of DCCI.​

 

[Saif]

CETP crisis chokes leather industry's growth

The world is more environmentally conscious than ever, as the threats of environmental degradation and water pollution become increasingly evident. Fashion, being one of the most polluting industries on the planet, can no longer evade its responsibility. There is a growing international pressure fo

thefinancialexpress.com.bd

CETP crisis chokes leather industry's growth

Atiqul Kabir Tuhin
Published :
May 29, 2025 01:05
Updated :
May 29, 2025 01:05

The world is more environmentally conscious than ever, as the threats of environmental degradation and water pollution become increasingly evident. Fashion, being one of the most polluting industries on the planet, can no longer evade its responsibility. There is a growing international pressure for the industry to acknowledge its effect on the environment and adopt environmentally preferred manufacturing methods and materials. And those unwilling or unprepared to innovate and adapt will inevitably be left behind, forced to bear the consequences of inaction and reflect on the opportunities they have lost.

In this context, Bangladesh's leather industry exemplifies a sector weighed down by such missed opportunities, primarily due to its failure to comply with international environmental standards. As the country's second-largest source of export earnings after ready-made garments (RMG), the leather industry holds immense potential. Unlike the RMG sector, which depends heavily on imported raw materials, the leather industry can boast of having a ready domestic supply of raw materials and competitively low labour costs. Despite these inherent advantages, the sector has struggled to reach its potential. The root causes lie in weak governance, environmental negligence, and an evident lack of political commitment to make the Central Effluent Treatment Plant (CETP) at the Savar Tannery Estate fully operational.

Leather processing is intrinsically harmful to the environment, with its heavy reliance on toxic chemicals and generation of substantial volumes of hazardous wastewater. To address these concerns and encourage cleaner practices, the Leather Working Group (LWG) was formed in 2005 by a coalition of global brands such as Nike, Adidas, and Timberland. LWG established a unified audit framework focusing on environmental management, chemical usage, waste treatment, and traceability of raw materials. It has since become the most recognised standard for environmentally responsible leather production worldwide. Without meeting the criteria set by LWG, manufacturers are effectively locked out of premium international supply chains.

LWG's database reveals a dismal compliance record for Bangladesh's leather industry. Italy leads with 952 certified factories, followed by 334 in India, 263 in China, 62 in Pakistan, 27 in Vietnam, and 24 in Taiwan. In contrast, Bangladesh has only eight LWG-certified leather goods manufacturers. This limited compliance has had significant repercussions. According to the Bangladesh Tanners Association, the industry loses an estimated $500 million annually in potential export revenue due to the absence of LWG certification. This is further reflected in export earnings, which fell from $1.13 billion in 2012 to $970 million in 2024-a decline largely attributed to non-compliance with international environmental standards.

Despite the relocation of tanneries from Hazaribagh to Savar more than eight years ago, the promised improvements have not materialised. The CETP at Savar, which was intended to address the environmental hazards of leather processing, remains incomplete and severely underperforming. It currently handles only about 14,000 cubic meters of waste per day, far short of the 35,000 cubic meters generated during peak periods such as Eid-ul-Azha. This shortfall means that significant amounts of untreated effluent continue to pollute the environment.

So, the question is how long will it take to establish a fully functional CETP? It is worth noting that the government invested approximately $53 million (Tk 565 crore) in the CETP facility, which was installed by a Chinese company. However, the plant was handed over to the Dhaka Tannery Industrial Estate Waste Treatment Plant Company (DTIEWTPC) in an incomplete state. Now, the facility requires extensive renovation and upgrade to meet operational standards. Instead of ensuring the CETP's functionality, the previous government tried to shift the responsibility to individual tanners, expecting them to establish their own Effluent Treatment Plants (ETPs).

While about six tanners have independently set up Effluent Treatment Plants (ETPs) to meet environmental requirements and maintain access to international markets, the majority of tanneries in Savar are small-scale operations. These smaller tanneries lack the financial capacity to install individual ETPs, making LWG certification unattainable for most. Consequently, Bangladesh's leather exporters are forced to sell around 65 per cent of their tanned leather to middlemen and importers in China, often at prices nearly 60 per cent lower than what could be secured through direct sales to high-end markets. This situation leaves many tanneries grappling with reduced orders, financial instability, unpaid suppliers, and defaulted bank loans, trapping the sector in a cycle of underperformance and stagnation.

The present interim government, which includes several well-known environmentalists in its advisory council, is expected to take the issue more seriously. Beyond the financial losses caused by this non-compliance, the environmental and public health consequences are equally, if not more, alarming. The Dhaleshwari River, adjacent to the Savar leather estate, has become a toxic waterway, heavily contaminated by untreated effluents and solid waste. One of the most dangerous pollutants is chromium, a chemical used extensively in tanning. When mishandled, chromium poses serious environmental and health risks. Studies have shown that toxic chromium has entered the food chain, contaminating fish and poultry that consume feed made from affected by-products. It, therefore, poses a grave threat to public health.

Bangladesh has already proven its capacity to maintain environmental compliance in the RMG sector. So, why not the same be replicated in the leather sector? As Bangladesh approaches its graduation from Least Developed Country (LDC) status, the leather industry represents a crucial opportunity to diversify the country's export portfolio. Industry experts suggest that with the right mix of environmental compliance, incentives, and policy support-similar to those provided to the RMG sector-leather exports could reach $5 billion annually by 2030. However, continued inaction threatens to push the industry further into decline, deepening both economic losses and environmental damage.​

 

[Saif]

Tanners may get slight tariff relief on chemicals

The government is considering reducing customs duty on seven imported tanning chemicals in the upcoming national budget, offering slight relief to the country’s struggling tannery sector.

www.thedailystar.net

BUDGET FOR FY26
Tanners may get slight tariff relief on chemicals

The government is considering reducing customs duty on seven imported tanning chemicals in the upcoming national budget, offering slight relief to the country's struggling tannery sector.

At present, only 27 tanners benefit from bond facilities designed to support the domestic leather industry. Around 100 others operate without such privileges and face higher and varied duties on chemical imports, according to finance ministry sources.

Industry leaders say this disparity creates an uneven playing field. The Bangladesh Tanners Association (BTA) has told the National Board of Revenue that the existing duty structure is hurting the competitiveness of the sector.

There are also reports that some traders are exploiting the bond system by importing chemicals duty-free and then selling them on the open market — an abuse made more profitable by the high duties faced by non-bonded tanners.

In response, the government is now weighing a reduction in customs duty on seven key chemicals used in tanning, including chromium sulphate, acid dyes, and wattle extract.

Under the proposal, duties on six of these items may be cut from 5 percent to 1 percent, while the duty on sulphate could drop from 10 percent to 5 percent. However, the NBR may also impose a 15 percent value added tax (VAT) on sulphate.

Even so, tanners say the planned changes are too little to make a real difference.

In a formal submission to the NBR in March this year, the BTA called for a sharp cut in the total tax incidence, which now reaches as high as 58.6 percent on some chemicals when advance taxes are included.

The association urged the government to bring that figure down to 7.5 percent.

"The current import tax structure, ranging from 35 to nearly 40 percent on essential chemicals, is simply unsustainable," said Shaheen Ahmed, chairman of the BTA.

"Chemical imports are the lifeline of the tannery sector. Except for basic inputs like salt and lime, we rely entirely on imported chemicals. Competing with countries that enjoy cheaper raw materials becomes nearly impossible under these tax conditions," said Ahmed.

He claimed that minor reductions in duty will not solve the bigger problem.

"Even if duties are cut by a few percentage points, it doesn't resolve the bigger issues," he said.

"Large commercial importers might absorb these costs, but small and mid-sized tanneries operating under strict compliance frameworks are disproportionately burdened," added the association chairman.

Mizanur Rahman, general secretary of the association and director of Samata Leather Complex Ltd, said that earlier reductions in duty, such as those on chromium sulphate, were eventually reversed, eroding industry confidence.

"Only seven products now receive marginal benefits, while duties on many essential chemicals remain unchanged," he told The Daily Star. "A 4 percentage-point concession is too little to offset the rising compliance and administrative costs we face."

According to Rahman, lowering chemical costs allows tanners to pay higher prices for raw hides, which in turn encourages internal competition and improves market dynamics.

He said that without meaningful reforms, many small and medium-sized tanneries could be forced to shut down.

"If current conditions persist, international buyers will increasingly turn to more cost-efficient suppliers elsewhere," he said.

"If the government genuinely intends to support the leather sector, the duty structure must be redesigned to reflect practical, on-the-ground needs," he added.

Speaking at a Dhaka Chamber of Commerce & Industry (DCCI) event on Sunday, Syed Nasim Manzur, president of the Leather Goods and Footwear Manufacturers & Exporters Association of Bangladesh, said the country produces around 350 million square feet of leather annually. Of this, nearly 40 percent is collected during the Eid-ul-Azha season.

Yet only 20 percent to 25 percent is processed locally, mainly for shoes and bags. The rest is exported, with 65 percent passing through Chinese middlemen who offer lower prices than direct international buyers, said Manzur.

For the industry, Manzur cited infrastructure and compliance issues as key setbacks.

"The Central Effluent Treatment Plant (CETP) at Savar is still non-functional, and we do not have critical global certifications like Leather Working Group (LWG) approval. Without these, we cannot enter premium international markets," he said.​

 

[Bilal9]

Tanners may get slight tariff relief on chemicals

The government is considering reducing customs duty on seven imported tanning chemicals in the upcoming national budget, offering slight relief to the country’s struggling tannery sector.

www.thedailystar.net

BUDGET FOR FY26
Tanners may get slight tariff relief on chemicals

View attachment 17943

The government is considering reducing customs duty on seven imported tanning chemicals in the upcoming national budget, offering slight relief to the country's struggling tannery sector.

At present, only 27 tanners benefit from bond facilities designed to support the domestic leather industry. Around 100 others operate without such privileges and face higher and varied duties on chemical imports, according to finance ministry sources.

Industry leaders say this disparity creates an uneven playing field. The Bangladesh Tanners Association (BTA) has told the National Board of Revenue that the existing duty structure is hurting the competitiveness of the sector.

There are also reports that some traders are exploiting the bond system by importing chemicals duty-free and then selling them on the open market — an abuse made more profitable by the high duties faced by non-bonded tanners.

In response, the government is now weighing a reduction in customs duty on seven key chemicals used in tanning, including chromium sulphate, acid dyes, and wattle extract.

Under the proposal, duties on six of these items may be cut from 5 percent to 1 percent, while the duty on sulphate could drop from 10 percent to 5 percent. However, the NBR may also impose a 15 percent value added tax (VAT) on sulphate.

Even so, tanners say the planned changes are too little to make a real difference.

In a formal submission to the NBR in March this year, the BTA called for a sharp cut in the total tax incidence, which now reaches as high as 58.6 percent on some chemicals when advance taxes are included.

The association urged the government to bring that figure down to 7.5 percent.

"The current import tax structure, ranging from 35 to nearly 40 percent on essential chemicals, is simply unsustainable," said Shaheen Ahmed, chairman of the BTA.

"Chemical imports are the lifeline of the tannery sector. Except for basic inputs like salt and lime, we rely entirely on imported chemicals. Competing with countries that enjoy cheaper raw materials becomes nearly impossible under these tax conditions," said Ahmed.

He claimed that minor reductions in duty will not solve the bigger problem.

"Even if duties are cut by a few percentage points, it doesn't resolve the bigger issues," he said.

"Large commercial importers might absorb these costs, but small and mid-sized tanneries operating under strict compliance frameworks are disproportionately burdened," added the association chairman.

Mizanur Rahman, general secretary of the association and director of Samata Leather Complex Ltd, said that earlier reductions in duty, such as those on chromium sulphate, were eventually reversed, eroding industry confidence.

"Only seven products now receive marginal benefits, while duties on many essential chemicals remain unchanged," he told The Daily Star. "A 4 percentage-point concession is too little to offset the rising compliance and administrative costs we face."

According to Rahman, lowering chemical costs allows tanners to pay higher prices for raw hides, which in turn encourages internal competition and improves market dynamics.

He said that without meaningful reforms, many small and medium-sized tanneries could be forced to shut down.

"If current conditions persist, international buyers will increasingly turn to more cost-efficient suppliers elsewhere," he said.

"If the government genuinely intends to support the leather sector, the duty structure must be redesigned to reflect practical, on-the-ground needs," he added.

Speaking at a Dhaka Chamber of Commerce & Industry (DCCI) event on Sunday, Syed Nasim Manzur, president of the Leather Goods and Footwear Manufacturers & Exporters Association of Bangladesh, said the country produces around 350 million square feet of leather annually. Of this, nearly 40 percent is collected during the Eid-ul-Azha season.

Yet only 20 percent to 25 percent is processed locally, mainly for shoes and bags. The rest is exported, with 65 percent passing through Chinese middlemen who offer lower prices than direct international buyers, said Manzur.

For the industry, Manzur cited infrastructure and compliance issues as key setbacks.

"The Central Effluent Treatment Plant (CETP) at Savar is still non-functional, and we do not have critical global certifications like Leather Working Group (LWG) approval. Without these, we cannot enter premium international markets," he said.​

Slight relief? These idiots should forego ANY tariff on tanning chemicals. I mean let's revive the leather sector first, then slowly impose tariffs to get back revenue.

If you have no revenue from a dying sector that was bustling even a decade ago, then what use are tariffs?

This stupidity boggles the mind...

 

[Saif]

Slight relief? These idiots should forego ANY tariff on tanning chemicals. I mean let's revive the leather sector first, then slowly impose tariffs to get back revenue.

If you have no revenue from a dying sector that was bustling even a decade ago, then what use are tariffs?

This stupidity boggles the mind...

Correct observation

 

[Saif]

Rawhide in Dhaka sold at Tk 700–900, below govt rate

Traders were purchasing cowhides for Tk 700–900 Tk each. Most sacrificial animals are medium-sized cows, and their hides are sold for 700–800 Tk.

en.prothomalo.com

Rawhide in Dhaka sold at Tk 700–900, below govt rate
Staff Correspondent Dhaka
Published: 07 Jun 2025, 22: 03

Hides of sacrificial animals are being sold at the Science Laboratory area in Dhaka on 7 June 2025. Prothom Alo

Rawhides are not being sold at government-fixed rates. The government raised Tk 5 per square foot of rawhide.

This has been learned after visiting the capital’s Mohammadpur, Science Laboratory, and Posta in Old Dhaka on Eid-ul-Azha, Saturday, and speaking with both buyers and sellers.

The price of cowhides is largely similar to last year's, whereas buyers have shown reluctance to purchase goat hides as they did in previous years.

Visiting these areas, raw cowhides were seen being sold between Tk 700-900. Smaller hides were being sold for up to Tk 600. Last year, cowhide prices were largely the same. Besides, goat hides were sold for Tk 5-10 each—similar to last year’s prices.

According to the Department of Livestock Services, there was a demand for approximately 10.38 million of sacrificial animals this year, while about 12.45 million animals, including cows and goats, were prepared for sacrifice. Tannery owners set a target to collect 8-8.5 million of hides during this year’s Eid season.

On 26 May, the Ministry of Commerce fixed the prices for sacrificial animal hides. In Dhaka, salted cowhide was priced at Tk 60–65 per square foot (up from 55–60 last year).

Outside Dhaka, the price was set at Tk 55–60 per square foot (up from 50–55). The minimum price for rawhide in Dhaka was set at Tk 1,350 and Tk 1,150 outside Dhaka. Additionally, salted hide of castrated goats was priced at Tk 22–27, and goat hide at Tk 20–22.

The wholesales in Posta area of Lalbagh, Old Dhaka, is one of the biggest areas for rawhide processing. Visiting the area around 4:00 pm on Saturday, seasonal traders and madrasa officials were seen arriving with rawhides on rickshaws, vans, and trucks. Warehouse owners were seen bargaining and buying the hides, and wholesale traders were also seen buying hides while sitting on chairs on the roadside.

Several warehouse owners and wholesalers said they were purchasing cowhides for Tk 700–900 each. Most sacrificial animals are medium-sized cows, and their hides are sold for Tk 700–800.

Trader Shahidul Islam was seen sitting on a plastic chair and buying hides in Posta. He purchased more than a hundred hides until 4:30 pm. He told Prothom Alo that seasonal traders often overpay when buying hides without knowing the market. However, the market is not doing well. He said they were buying hides for Tk 700–900.

Md Sharif, owner of Suman and Sons, was seen overseeing the hide purchases. He said they were purchasing each cowhide for Tk 700–900. According to him, processing each hide, including salt and labour costs, would cost around Tk 350–400. Since the market sees slump, they are purchasing hides at slightly lower prices than last year.

Seasonal trader Kawsar Ahmed brought 13 raw cowhides from the Kalabagan area to Science Laboratory for sale in the afternoon. He had bought them at Tk 600–700 and was asking for Tk 1,200 per hide. However, no warehouse owner or tanners was willing to pay more than Tk 750. Finally, he sold them all at that rate.

Kawsar Ahmed said the hides he brought should have sold for at least Tk 850–900 each. But he had to sell them at a loss. After paying van fares and a helper's wage, he would be left with nothing.

Sajedul Khair, director of Kalam Brothers Tannery, was purchasing hides from seasonal traders. This tannery plans to collect 100,000 to 150,000 salted hides this year. They aim to collect at least 10,000 raw hides within the two days of Eid.

Sajedul Khair said they bought most cowhides today from seasonal sellers at Tk 750–850, and they are paying per hide about Tk 30–50 more than last year.

Some very large hides were seen selling for as much as Tk 1,500. For instance, seasonal trader Rafiqul Islam was buying hides in the Mohammadpur Town Hall area in the afternoon. He said he bought over 60 hides since the morning. He paid Tk 3,000 for the hides of two cows that were purchased for Tk 3.2 million.

Sakhawat Ullah, senior vice chairman of Bangladesh Tanners Association (BTA), said there were more small cowhides this year. However, overall supply of hides is good.

According to him, the price per hide is Tk 100–150 higher than last year. He also said that tannery companies aim to collect 500,000 to 600,000 raw hides this year. These companies typically buy hides directly to help stabilise the rawhide market.​

 

[Saif]

Rawhides of sacrificial animals being sold at govt-fixed price

Commerce Adviser Sheikh Bashir Uddin has said the rawhides of the sacrificial animals are being sold in the country at government-fixed price. He also said a special team of the Ministry of Commerce has been working to make effective the price of rawhides set by the government. The Commerce Advis

thefinancialexpress.com.bd

Rawhides of sacrificial animals being sold at govt-fixed price

FE ONLINE DESK
Published :
Jun 09, 2025 00:06
Updated :
Jun 09, 2025 01:10

Commerce Adviser Sheikh Bashir Uddin has said the rawhides of the sacrificial animals are being sold in the country at government-fixed price.

He also said a special team of the Ministry of Commerce has been working to make effective the price of rawhides set by the government.

The Commerce Adviser made the statement after visiting the operations of fair management of rawhides of sacrificial animals at Posta under Lalbagh area of the capital on Sunday.

Replying to a question on the prices of rawhides, he said that they had earlier fixed the price of rawhides with salt. But, the prices of rawhides being sold in between Taka 700 to Taka 800 are without salt. “The prices of rawhides this time are higher than the prices witnessed over the years,”

Replying to another question on the seasonal rawhides trader, Bashir said that most of the seasonal rawhides traders lack due experiences and knowledge in preservation of rawhides and to some extent they are getting lesser prices of rawhides due to bad condition of rawhides. But, they are getting fair prices of rawhides with better condition ranging between Taka 1,200 to Taka 1,300.

The Commerce Adviser said that following directives from the Chief Adviser, they have been able to strike a balance between the demand and supply side while the district and upazila administrations have been working to ensure fair management of rawhides.

Besides, a control room has been opened at national level to ensure round the clock monitoring of fair management of rawhides.

He mentioned that in most of the cases, rawhides with salt are being sold at government fixed prices.

Bashir also urged all to remain alert about the activities of some unholy businessmen to bring a havoc in the rawhides sector.

Highlighting some of the measures taken by the interim government centering the Holy Eid Ul Azha, he said that the government has withdrawn ban on export of wet blue leather while some Taka 220 crore incentives have been disbursed. Besides, salt has been provided to the district and upazila level and even up to the mosques.

He said that the price of rawhides has increased today compared to yesterday while the price of rawhides with salt is expected to rise further tomorrow.

The Commerce Adviser said that the capacity of preserving rawhides has increased in the country while it is now possible to preserve rawhides for two to three months, he said urging all not to sell rawhides until fair price is ensured.

Commerce Secretary Mahbubur Rahman, Additional Secretary M Abdur Rahim Khan and Bangladesh Tanners Association President Md Shahin Ahmed were present, among others, on the occasion.​

 

[Saif]

Govt determined to break leather industry syndicates: Commerce Adviser

Commerce Adviser Sk Bashir Uddin on Monday said the government has been working to dismantle the powerful syndicates formed over the past 15 years centring the leather industry. Speaking to journalists after inspecting preparations for managing sacrificial animal hides at the largest leather marke

thefinancialexpress.com.bd

Govt determined to break leather industry syndicates: Commerce Adviser

FE Online Desk
Published :
Jun 09, 2025 20:30
Updated :
Jun 09, 2025 20:30

Commerce Adviser Sk Bashir Uddin on Monday said the government has been working to dismantle the powerful syndicates formed over the past 15 years centring the leather industry.

Speaking to journalists after inspecting preparations for managing sacrificial animal hides at the largest leather market in the southwest region at Rajarhat in Jashore, the Adviser emphasised the government’s commitment to protecting the interests of orphanages and madrasas involved in the leather trade, reports UNB.

He said the country’s leather industry has suffered from extensive mismanagement and chaos over the past 15 years, leading to its significant decline.

“Our efforts prioritise the welfare of madrasas and orphanages, while also focusing on the overall recovery and future of the leather sector. The government is taking nationwide action to break illegal syndicates and revive the industry,” Bashir said.

To ensure fair pricing and preservation of raw hides, the government has distributed 7.5 lakh maunds of salt across the country, the Adviser said, criticising seasonal traders for mishandling hides due to a lack of knowledge, which resulted in financial losses.

The Adviser also mentioned that the government released Tk 220 crore in incentives to tannery owners ahead of Eid to boost their capacity and is taking steps to expand market management.

He expressed optimism that these initiatives would help re-establish Bangladesh’s leather industry in international markets. “Although the government has been blamed for the disorder, our unprecedented efforts to protect the leather industry need everyone’s cooperation to succeed,” he said.

Jashore’s Deputy Commissioner Azahar Islam and Superintendent of Police Rownak Jahan were present during the visit.​

 

[Saif]

Adilur visits Savar tanneries to see rawhide preservation

Industries Advisor Adilur Rahman has said rawhides of more than 3.5 lakh sacrificial animals have so far been preserved in the tanneries of BSCIC Industrial City in Savar this year. Moreover, hides of over 7.50 lakh sacrificial animals would be reached to the tanneries very shortly, he said while

thefinancialexpress.com.bd

Adilur visits Savar tanneries to see rawhide preservation

FE ONLINE DESK
Published :
Jun 09, 2025 18:06
Updated :
Jun 09, 2025 18:06

Industries Advisor Adilur Rahman has said rawhides of more than 3.5 lakh sacrificial animals have so far been preserved in the tanneries of BSCIC Industrial City in Savar this year.

Moreover, hides of over 7.50 lakh sacrificial animals would be reached to the tanneries very shortly, he said while addressing a meeting with tannery owners at BSCIC Savar.

Adilur Rahman said this year the government has tried to ensure the proper storing of the rawhides and allow the sellers getting price of the rawhides as fixed by the government, reports BSS.

He said the government has given about 30 thousand metric tons of salt to tanneries for proper processing of the rawhides.

Adilur said the present government is making all efforts for development of the tannery industries. Action will be taken against the persons who are responsible for current miseries of the industry, he said adding that the Anti-Corruption Commission (ACC) has already summoned them.

The adviser also said the government has taken initiatives to modernize the tannery's central waste treatment plant.

Later, he inspected the rawhide preservation activities of the some tanneries.

Leaders of tannery association and other organizations related to leather industry were present.​

 

[Saif]

Record leather prices this year: Bashir Uddin

Trade Advisor Sheikh Bashir Uddin stated that leather prices this year were the highest in a decade and are likely to rise further next year. He emphasised the need for collective efforts and trade expansion to boost the economy. Speaking at a meeting with leather traders in Natore's Chakbaidyanat

thefinancialexpress.com.bd

Record leather prices this year: Bashir Uddin

FE ONLINE DESK
Published :
Jun 10, 2025 18:12
Updated :
Jun 10, 2025 18:12
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Trade Advisor Sheikh Bashir Uddin stated that leather prices this year were the highest in a decade and are likely to rise further next year. He emphasised the need for collective efforts and trade expansion to boost the economy.

Speaking at a meeting with leather traders in Natore's Chakbaidyanath area on Tuesday, he mentioned that while 620 hides were spoiled by seasonal traders in Chattogram, no such incidents occurred in Dhaka, according to local media.

The government has supplied tannery owners with salt samples to ensure proper leather preservation and distributed 750,000 maunds of salt nationwide. Bashir Uddin stressed inclusive business practices and expanding international trade to strengthen the market.

Local officials and business leaders also attended the event.​

 

[Saif]

Raw hide procurement in disarray

Raw hide trade, following the Eid-ul-Azha, is facing serious disruptions, sending distress signals not only to those directly engaged in the business but also to the leather industry as a whole. Seasonal traders, who collect raw hides from across the country during the Eid season, are finding it in

thefinancialexpress.com.bd

Raw hide procurement in disarray

Published :
Jun 13, 2025 00:59
Updated :
Jun 13, 2025 00:59

Raw hide trade, following the Eid-ul-Azha, is facing serious disruptions, sending distress signals not only to those directly engaged in the business but also to the leather industry as a whole. Seasonal traders, who collect raw hides from across the country during the Eid season, are finding it increasingly difficult to sell their stocks. The core issue lies in the disconnect among the collectors, wholesale buyers (aratdars), and tannery owners. While seasonal traders accuse aratdars of offering prices far below expectations, the latter complain that tannery owners are unwilling to pay the government-fixed rates. Allegations abound that tanners have, for several years now, maintained a syndicate to artificially suppress prices in order to maximise profits.

This year, prices of cowhides reportedly dropped 30-40 per cent below the government-fixed minimum retail price (MRP). The government had set cowhide prices at Tk 1,350 in the capital and Tk 1,150 outside, or Tk 60-65 per square foot, up from Tk 55-60 the previous year. Tannery owners have set a target of collecting 8.0 to 8.5 million pieces of hides during the current season. However, as regards their reluctance to buy at government-set prices, they argue that in the wake of the continuing slump in international prices and stocks already available with them from last year's collection, they are not prepared to risk purchases at uncompetitive prices. Reports say, so far, collection of raw hides and skins has been far below the expected level. As a result, many seasonal traders, especially in the northern districts, are reportedly stockpiling unsold hides, anticipating better prices. In the case of goatskins, the situation is even worse. Many collectors, unaware of the prevailing market rates, purchased goatskins in bulk only to find that aratdars were offering throwaway prices, rendering their collections almost worthless.

Observers view this scenario as a troubling sign for the country's leather sector, which is already grappling with various challenges. They fear that in the absence of proper preservation, the raw stuff now lying with the traders unsold may get wasted. At the same time, there is the looming threat of large-scale smuggling to neighbouring countries. If the hides are not disposed of locally well within time, then smuggling becomes the only probable outlet. Informed sources say every year business people from across the border pay substantial amounts in advance to local collectors prior to Eid-ul-Azha to make sure that the illicit cross-border operation succeeds, despite 'watchful eyes' of the border forces on both sides.

To prevent such outcomes, the government must act promptly. Law enforcement and relevant agencies should intensify vigilance along border areas. A coordinated effort involving local administration, industry stakeholders, and security forces is essential to stabilise the raw hide market and protect the interests of both traders and the leather industry. Without timely intervention, the fallout could be severe-economically and reputationally-for a sector that holds significant export potential and employment prospects for the country.​

 

[Saif]

Loan release for leather sector falls short of target

The Bangladesh Bank’s initiative to inject Tk 232 crore into the leather sector for procuring rawhide during Eid-ul-Azha has fallen significantly short, with only Tk 125 crore disbursed to businesses, according to industry insiders...

www.newagebd.net

Loan release for leather sector falls short of target
United News of Bangladesh . Dhaka 12 June, 2025, 23:01

The Bangladesh Bank’s initiative to inject Tk 232 crore into the leather sector for procuring rawhide during Eid-ul-Azha has fallen significantly short, with only Tk 125 crore disbursed to businesses, according to industry insiders.

Bankers cited a lack of interest among leather traders in taking out new loans as a reason for the shortfall, while the industry insiders highlighted a sharp rise in loan defaults, which has made banks more reluctant to extend credit to the sector.

As a result, tannery owners and seasonal leather suppliers have been unable to purchase sufficient quantities of rawhide during the peak Eid-ul-Azha season.

Stakeholders are now calling for easier loan terms and relaxed documentation requirements ahead of what is typically the country’s largest rawhide collection period.

Although nine banks initially approved Tk 232 crore in loans for rawhide procurement this year, only Tk 125 crore was disbursed, leading to a funding shortfall that entrepreneurs say has hampered both the collection and processing of rawhide.

According to sources, the Tk 125 crore disbursed this Eid season marked a steep decline from previous years — down from Tk 270 crore in 2024, Tk 259 crore in 2023, Tk 443 crore in 2022, Tk 735 crore in 2021 and Tk 1,800 crore in 2019.

Md Shaheen Ahmed, chairman of the Bangladesh Tanners Association, told UNB, ‘Since leather is a perishable product, it needs to be collected and stored quickly. Cash is needed to buy leather collected from various warehouses across the country.’Bangladeshi cuisine recipes

‘For this, the warehouses collect leather from part-time traders during the Eid season. But even though tannery owners do business with their own capital throughout the year, special financing is needed for additional cash during Qurbani. This time, the banks had a demand of Tk 300–350 crore. They gave only Tk 125 crore, which is not enough,’ he added.

He said that with adequate cash loan support, problems in the leather sector could have been mitigated. ‘The poor and needy would have received cash from the leather. Foreign exchange income would have increased by exporting this,’ he pointed out.

Bangladesh Bank executive director and spokesperson Arif Hossain Khan said that the target for lending to the leather sector this time was Tk 232 crore. ‘It is not possible to say before the bank opens how much loan will be waived in the end,’ he said.

He also acknowledged that a segment of traders failed to repay borrowed funds, which has led to a significant rise in loan defaults in the sector. ‘If they ask for loans and don’t repay them, who will give them new loans? So they have to take loans with the mindset of repaying them. Otherwise, the crisis will not end,’ he said.Bangladeshi cuisine recipes

According to the Bangladesh Bank’s latest report, the outstanding loan balance in the leather industry stood at Tk 12,628 crore as of December 2024. Of this, Tk 4,844 crore has defaulted, accounting for 38 per cent of total loans in the sector.

The Bangladesh Tanners Association represents approximately 800 members, including tannery owners and commercial exporters. There are 1,866 large and medium-sized tanneries across the country.

Besides, many small tanneries collect leather from seasonal entrepreneurs during Eid-ul-Azha.

Tanner Anwar Hossain said that while most rawhide was collected during Eid-ul-Azha, inadequate management led to the wastage of roughly 30 per cent each year.

The leather sector not only contributes to national growth and employment but also earned approximately $1.13 billion in foreign exchange during the last financial year, underscoring the need for focused attention and support.Bangladeshi cuisine recipes

Amjad Ali, a seasonal leather supplier, said, ‘Banks only give loans to tannery owners and exporters. They do not give loans to others involved in the raw leather business. If money had been received according to demand, the spoilage of leather could have been prevented.’​

 

[Saif]

Synthetic footwear exports soar as global demand shifts

Bangladesh’s non-leather footwear sector is emerging as a steering force in the country’s export landscape, driven by global shifts in consumer preferences, strong manufacturing capacity, and competitive pricing

www.thedailystar.net

Synthetic footwear exports soar as global demand shifts

Bangladesh's non-leather footwear sector is emerging as a steering force in the country's export landscape, driven by global shifts in consumer preferences, strong manufacturing capacity, and competitive pricing

While leather footwear still leads with $620.17 million in exports until May of fiscal year 2024-25, up 28.96 percent year-on-year, the non-leather segment is rapidly catching up.

In the first 11 months of the current fiscal year, non-leather footwear exports fetched $494.28 million, marking a 30.25 percent growth compared to $379.48 million in the same period of the previous fiscal year, according to Export Promotion Bureau data.

In May alone, leather footwear fetched $74.82 million compared to $48.37 million a year earlier.

Industry insiders credit this growth to modern production capacity and fewer compliance burdens, making it easier for Bangladeshi manufacturers to meet global standards and attract international buyers.

"The non-leather segment benefits from fewer regulatory hurdles," noted one industry expert.

"Unlike the leather sector, which requires certification from the Leather Working Group (LWG) and faces challenges related to raw material quality and environmental compliance, synthetic footwear producers primarily need to meet factory compliance standards," he said.

As demand for fashionable, affordable, and sustainable footwear grows globally, particularly among younger consumers, the synthetic footwear segment is well-positioned to become a key contributor to Bangladesh's export diversification strategy.

In the decade preceding the end of FY24, non-leather footwear exports ballooned 120 percent, jumping from $189 million to $416 million.

"The young generation in the Western world is shifting from leather to synthetic shoes as they are more comfortable, fashionable, and cheaper," said Riad Mahmud, managing director of Shoeniverse Footwear.

In contrast, leather shoes are worn for formal occasions and have limited design flexibility, causing a global demand decline of around 12 percent annually, he noted.

This shift has fuelled steady growth in synthetic shoe demand over the past five to six years.

Shoeniverse's Mymensingh-based factory, employing around 4,700 workers, supplies footwear to major global brands including Inditex, Aldi, Matalan, and RedTape.

Mahmud said global brands are increasingly placing orders in Bangladesh, drawn by its competitive labour costs and proven expertise in apparel manufacturing.

He emphasised that the non-leather footwear sector holds strong potential due to its labour-intensive nature, giving Bangladesh a cost advantage over countries like Vietnam.

However, challenges persist. Delays in customs clearance for raw materials hamper lead times—a critical factor in the fashion-driven synthetic shoe market that demands quick delivery.

Despite this, demand remains robust. Shoeniverse is fully booked through March next year, with buyers seeking new slots amid potential US tariffs on Chinese goods.

A market assessment by Bangladesh Investment Development Authority (Bida) supports the trend, citing rising non-leather footwear exports due to increased orders from global brands such as H&M, Puma, Decathlon, FILA, and Kappa.

Major export destinations include Spain, France, the Netherlands, South Korea, India, Italy, and Germany.

Maf Shoes Ltd, a TK Group subsidiary exporting to France and Germany, boosted daily output from 50,000 to over 65,000 pairs. "European demand is soaring but structural barriers remain," said Managing Director Hasnat Md Abu Obida Marshall.

Europe remains the top market for Bangladeshi synthetic shoes, yet exporters face customs confusion, weak logistics, and exclusion from RMG-specific waivers.

"During Eid, our containers were stuck, but penalty waivers applied only to the BGMEA," a frustrated exporter said.

Moreover, competing with China is tough. While Chinese exporters enjoy 7 percent to 12 percent incentives and raw material self-sufficiency, Bangladesh battles high import duties, delays, and little policy support.

"We import everything and still try to compete on price," said one exporter.

The country also lags in value-added footwear. Despite paying lower wages than Vietnam, productivity remains much lower in Bangladesh.

"We are burning money just to keep factories running," the exporter added.

Some big global firms are eyeing India for relocation, drawn by availability of land, tax breaks, and better infrastructure in states like Tamil Nadu and Kerala.

"India calls investors—we don't even have an exit policy for foreign investment," said Marshall.

To unlock growth, exporters are calling for swift government action, including a dedicated synthetic footwear policy, equal customs treatment as RMG, access to technology financing, and incentives for backward linkage industries, he said.

Jakaria Shahid, managing director of Edison Footwear Limited, sees the synthetic footwear sector as a crucial driver for future export diversification, thanks to its fast-paced expansion.

However, he pointed out that major international brands like Nike and Adidas have yet to enter the Bangladeshi market, mainly because local manufacturers struggle to meet required lead times.​