The country's leather sector has witnessed an exhilarating come back as leather goods exports have rebounded last month (July) this year, breaking its falling trend of more than two years. Experts have underpinned the need for seizing the opportunities of rising demand for leather products in different countries in the wake of the trade war between China and the USA.
Although, the export earnings from this sector witnessed a negative growth to stand at $1.01 billion in the last fiscal against $1.08 billion in fiscal year 2017-18, this growth showed a positive turn in the last month, an encouraging trend for the country, they opined. The export earnings from this sector stood at $106.10 million in the last month, which was 16.39 percent higher than the same period of the previous fiscal. During the same period of previous year, the figure was $91.16 million.
To further rejuvenate the leather sector, the government has, of late, approved a new policy for this potential sector offering 17 types of incentives to boost the export earnings in the sector to $5 billion by 2024, commerce ministry sources said. Market analysts said the leather sector needs special care for a rebound due to its facing of huge difficulties to compete in the global market.
Since the shifting of the tannery industries from the city's Hazaribagh area to Savar, the country's leather sector is facing serious difficulties especially due to lack of a central effluent treatment plant (CETP) and water treatment plant, putting many tanneries in peril, they said. They said many leather companies are failing to fulfill buyers' demand, causing a constant fall in export earnings and driving the buyers away.
Bangladesh Tanners Association (BTA) President Shaheen Khan told the Bangladesh Post most of the companies cannot get higher price of their products from the global market as the tannery industries in Saver have yet not installed all requisite machinery in their respective units. He expects the Savar tannery village to become fully operational, including the CETP and dumping grounds, within the next one year. After that, the local tanners would get better prices, which will help to boost this sector, he noted.
Md Shakawat Ullah, General Secretary of BTA, told the Bangladesh Post that the government has taken various initiatives to boost the leather sector, which is regarded as a very potential sector after the readymade garments. Although the export earnings from leather and leather goods have decreased significantly in the last several years, it has staged a comeback with a positive growth due to government's several steps, he said.
Abdus Salam Murshedy, President of Exporters Association of Bangladesh (EAB), told the Bangladesh Post that the country is mainly dependent on Chinese market for leather exports which pushed export earnings down in this sector because China is faced with trade barriers with the United States. He said the country now is capable of making the best quality products at low prices, which will help enhance export earnings by diversifying the market globally.