Prospect for country’s leather industry

Prime Minister Sheikh Hasina’s announcement that her government has a plan to set up two more leather industrial estates –one each in Rajshahi and Chittagong–reflects the importance the government attaches to the development of the industry. The plan is indeed big in that the country is eying to earn $5.0 billion from the sector by 2021 when its total export target is going to be $60 billion. This means one-twelfth of the foreign exchange may come from the leather sector by that time. Currently, the sector earns 1.54 per cent of the total foreign exchange earning with an average annual growth of around 29.8 per cent. By all accounts, the growth is already commendable but it will go up many folds when two more leather industrial estates will start operating. Even the lone estate at Savar is yet to go for its optimum production capacity. Indications, therefore, are clear that the country, if it can exploit its potential, will be a leading player on the global scene of footwear and other leather goods.

The introduction of cutting-edge equipment and technological know-how has surely superior the capability of manufacturing and first-class of products. However, not all leather-based factories have opted for the technological transformation. The lengthen in relocation of leather-based factories from Dhaka’s Hazaribagh to Savar has not helped the cause. Even the Savar leather estate nonetheless faces numerous problems, disposal of stable waste and the failure of the central effluent remedy plant to run to its attainable being the most important ones. The hope that the surroundings of the new location will ease the many mismanagement and troubles dealing with the manufacturing unit employees has not yet materialised. Additionally, a wide variety of tannery gadgets have allegedly commenced polluting the Dhaleswari River in the identical way they did the Buriganga earlier.

Clearly, there is a gap between the lips and the cup. Now that the Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) has emerge as a member of the Confederation of International Footwear Association (CIFA) and is privileged to host the 36th International Footwear Conference two (IFC) 2017, the event will grant the required impetus to bring its house in order. The authorities intention is clear and with guide from some of the technologically leading contributors of the CIFA, Bangladesh tanners can take the industry countless steps forward through the deadline set for incomes $5.0 billion from the sector. The theme of the conference, ‘Think Ahead, Think Bangladesh’ is the right method for the purpose.

Now the greatest project will come from the environmental concern. No industrial development can be made at the price of surroundings of this tiny land. It has to be sustainable improvement all the way. The Savar tannery property did not have an auspicious beginning. If such lapses can’t be taken care of, foreign investment, one of the key components, and technological know-how switch will be challenging to come by. The zero-tariff incentive as provided for overseas investors will be a temptation but it has to be complemented via similarly facilitation of working environment.