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

[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

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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.​