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

[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
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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.​