Tanners and businessmen have expressed mixed reactions to the lifting of the ban of raw and wet-blue hide export as group of rawhide traders have welcomed the government’s decision while another group opposed it.
The government has lifted a 35-year-old ban on export of raw and wet-blue hides with an aim to ensure fair pricing and boost leather exports amid the allegations that tannery owners are responsible for low rawhide prices during Eid-ul-Azha.
The ban will be withdrawn for three months, and tanners can open Letters of Credit (LCs) for export until August 25. Bangladesh Bank has directed departments concerned to take necessary steps in this regard.
President of Bangladesh Hide and Skin Merchant Association Monjur Hasan said, “Allowing export of raw and wet-blue hides will undoubtedly help ensure fair prices. This will increase demand for rawhide and ensure fair prices."
He also said wet-blue hides can be stored for two to two and a half years and so, cattle hides unsold last year could now be exported. Any trader can get this export opportunity. Hides that have remained piled up can be exported during this period,” Hasan added.
However, tannery owners are not happy with the government decision, fearing that it will decrease the leather goods export facilities, which constitute a bulk of export earnings for the leather sector.
Senior Vice-president of Bangladesh Tanners' Association (BTA) Md Sakhawat Ullah said, “We need to think that how logical it will be to allow export of wet-blue and hides. We have invested thousands of crores of taka to process raw hides into crusted and finished leather. This has created many jobs. Now, if raw hides are exported, our industry will be threatened.”
He further said, “Tannery owners will not get fair prices of wet-blue and rawhides without adding value to them. If that's the case, why didwe spend so much money in this industry?”
The BTA leader believes that export of wet-blue hides will seriously affect the leather sector, saying, "Export of wet-blue hides is harmful for this industry and that is why it has been banned since 1990."
The leather sector is considered the second largest export earner after readymade garments. However, this potential sector is facing various challenges.
For instance, in Fiscal Year 2022-23, exports of leather and leather goods brought in around $961.49 million, a decline from previous years when it had crossed billion-dollar mark ($1.13 billion in FY15).
Recent data of the Export Promotion Bureau (EPB) for July 2023 to May 2024 shows that export earnings from the leather sector stood at $961.49 million during the period, a 14.17 percent decrease year-on -year and below the target.
Finished leather exports showed some growth (9.71pc or $125.72 million), but leather footwear, a major component, struggled significantly, declining by nearly 26pc.
Some reports from early 2025 (covering July-December 2024 or July-March 2024-25) show a slight recovery in the leather and leather goods sector, with export figures like $852.01 million for July-March (a 9.89pc increase year-on-year).
However, lack of Leather Working Group (LWG) certification for most tanneries remains a major hurdle, which is causing a loss of $500 million annually for not being able to access higher-value markets.
Earlier, Commerce Adviser Sheikh Bashiruddin said that the government has taken a plan to support the leather industry. “We will set fair prices of leather goods and make sure that markets follow the plan. If needed, we will allow direct exports of raw hides to ensure fair pricing.”
