Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Logo
Thursday, December 13, 2018 02:08:35 AM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Leather export declined 12pc

photo by

By
10th-Jul-2018       
Comments
Share your thought
Post a comment »
Read all () »

Kamruzzaman Bablu :
The alarming declining trend of Bangladesh's export earnings from goods of finished leather and footwear leather suffered a huge drop by over 12 percent in the last fiscal year (FY) for which manufacturers blame several causes especially the forced relocation of the centre the tanning industry.
According to Export Promotion Bureau (EPB) data, of the total earnings from leather in FY18, leather products earned $336.8 million- a year-on-year fall of 27 percent- even if leather footwear bucked the down trend, growing by over 5 percent to $565.6 million in the last FY.
"The majority of factories are yet to resume manufacturing since the relocation," Md. Shaheen Ahamed, Chairman of the Bangladesh Tanners Association (BTA), told the New Nation.
"So far only 110 tanneries have restarted production. As a result of that the production rate is low that caused export earnings lower."
Shaheen said buyers have reacted negetively by switching to other sources of leather and leather products due to the non-compliance issues at Savar Leather Industrial Park, where the Central Effluent Treatment Plants are yet to become operational.
"I cannot give you any information about the issue because of I'm not concern now" Avijit Chowdhury, Director General of Export Promotion Bureau under the Commerce Ministry, told the New Nation on Monday.
Sources said, leather sector, the second largest export earner after apparel products, contributed $1.08 billion or just fewer than 3 percent of the total national exports of $36.66 billion in FY 2017-18.
According to EPB data, however, Bangladesh earned $1.23 billion from the sector in the FY 2016-17.
That strong performance had even prompted Prime Minister Sheikh Hasina to announce leather as the Product of the Year for 2017, saying the government would "boost this industry to reach its full potential".
Since then, however, the industry's manufacturing base has been hollowed out with the relocation of the tanneries from Hazaribagh in Old Dhaka.
The move was made by forced in April last year when, following a High Court order, the government cut power and gas connections to the tanneries to compel the owners to relocate to Savar Leather Industrial Park at the north of the capital.
Manufacturers are also blaming the industry's recent slump on the rise in popularity of rexine- a strong-coated cloth that imitates leather and is especially useful for upholstery and bookbinding.
"Rexine and synthetic products are grabbing the market of leather products as they cost less," MA Majed, an adviser to Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association, said.
Majed, who is also the Executive Director (marketing) of Apex Tannery, said the prices of the leather processed in Bangladesh is also falling due to the degraded condition of raw hides of slaughtered animals.
In the last FY, export earnings from processed leather dropped by 21 percent from $232.6 million to $183 million.
"Quality leather is a prerequisite for quality products in order to earn more," he said. "To improve the leather quality, the government should introduce designated slaughtering houses in the major cities to ensure proper skinning of the slaughtered animals."
Meanwhile, Shaheen Ahamed said the industry is being further hit by the failure of entrepreneurs to secure bank loans due to an administrative delay.
"The tannery owners have to provide their land registration documents as security to get loans [but] those relocated to the Savar Leather Industrial Park are yet to receive their documents from the government," he said.
A tannery owner, requesting anonymity, said the government is yet to keep its promise to give this sector a boost after the relocation.
"It has been over one and a half years, but the tannery owners have not received the land registration documents," he complained.
"The government has given no proper direction since the relocation last year. The leather sector has hardly been benefited from their special attention."
Sector sources said leather export earnings would rise again when all the tanneries at Savar become fully operational.
They said that in order to realize the full potential of the industry, the government would have to ensure unhindered utility services and finish installing the Central Effluent Treatment Plants.
In addition, the industry sees the potential to expand into the US market due to the country's looming trade war with China.
US President Donald Trump has signaled his intention to slap a 25 percent tariff on a number of Chinese products entering its markets, in response to alleged intellectual property theft. China also quickly announced its own plans to put tariffs on US goods.
"If the US officially imposes the 25 percent tariff, entry of Chinese leather products to its markets might decrease and create opportunities for Bangladeshi leather goods," said BTA leader Shaheen Ahamed.
"We can grab more market share in the US by taking the advantage of the US-China trade war, but our government will have to take proper steps in tapping that opportunity."

Tariff
Add Rate

News Archive

Inside The New Nation

Editorial »

Outstanding performance of our farmers


FARMERS of Pirojpur district have successfully used marshlands to grow up paddy saplings which would help meet sapling shortage in the waterlogged areas during paddy cultivation. In the district, farmers devoid of sapling during the Boro season as most uplands, where Boro seedlings usually grew, have been used for cultivating ...

International »

France hunts gunman after three killed at Strasbourg Christmas market


AFP  :Hundreds of police hunted Wednesday for a gunman who shot dead three people and wounded 13, eight seriously, at a famed Christmas market in Strasbourg, on the French border with Germany.The attack took place Tuesday around 8 pm (1900 GMT) in the heart of the medieval city as the ...

City »

A faction of BFUJ and DUJ staged a demonstration in front of the Jatiya Press Club on Wednesday in protest against closure of 54 online news portal.


.

Cricket »

Mashrafe regrets not getting another 20-25 runs after loss


UNB, Dhaka :Bangladesh lost the second ODI of the three-match series on Tuesday at Sher-e-Bangla National Cricket Stadium to the Windies by four wickets. The hosts' captain Mashrafe Bin Mortaza regrets more 20-25 runs at the end of the match.Bangladesh posted 255 for seven wickets in the first innings after ...

Entertainment »

Priyanka Gope in discussion with her new song


Sheikh Arif Bulbon :It is mostly happened in case of many singers where despite having outstanding lyrics and mind blowing composition many songs do not hit among the music lovers. For this reason, many singers cannot create attention among the listeners. National Film Award winner singer Priyanka Gope has rendered ...

Cricket »

Opener Tamim Iqbal (left) of Bangladesh plays a shot during the second One Day International match between Bangladesh and West Indies at the Sher-e-Bangla National Cricket Stadium in the city's Mirpur on Tuesday.


Cricket »

Mashrafe creates record by leading Bangladesh in maximum ODIs


Mashrafe Bin Mortaza, the Bangladesh ODI captain, has created a new history playing the second encounter of three-match series against West Indies by equaling the record of Habibul Bashar to lead Tigers in most ODIs. Mashrafe has all the chances to surpass his predecessor in the third and final match of ...

Editorial »

Social awareness can help stop cruelty


A YOUNG factory worker, Azharul Islam Suman, was killed in Naraynganj on Saturday when some persons inserted a high-pressured air nozzle into his rectum and activated it. We have no word to express our shock and agony seeing the brutal method of torture and killing a man. The occurrence could ...

International »

Ex US senators warn of `constitutional crisis` under Trump


AP, Washington : Forty-four former US Senators from both major US parties warned Monday of threats to US democracy under President Donald Trump, and a "constitutional crisis" for America. They said the convergence of events - as special counsel Robert Mueller probes whether Trump's campaign colluded with Russia to tilt the 2016 ...

International »

Trillions of dollars paid in bribes, stolen through corruption every year: UN


PTI, United Nations: Trillions of dollars - equivalent to more than five per cent of global GDP - are paid in bribes or stolen through corruption every year, according to the United Nations.Secretary-General Antonio Guterres deemed corruption "an assault on the values of the United Nations," in a message on ...

City »

BNP candidate Mirza Abbas speaking at a press conference on `BNP candidates participating in the eleventh parliamentary elections are in arrest and attack panic` at his residence in the city`s Shajahanpur on Tuesday.


Entertainment »

Pori Moni becomes Fair & Lovely brand ambassador


Entertainment Desk :Dhallywood star Pori Moni  signed a contract with popular skin product brand 'Fair &Lovely' as their brand ambassador on Sunday . She signed the contract with Unilever Bangladesh, according to a recent press release.Senior officials of Unilever Bangladesh were present at the contract signing event at the Unilever ...

Entertainment »

Airin in web series for first time


Sheikh Arif Bulbon :Celebrities are showing their keen interest to work in web series. For this reason, they are working one after another in web series. Viewers are also showing their interest to enjoy these worldwide. Film actress Airin has include her name in the list working in web series. ...

Editorial »

Ensure justice for rape victims and protect the witnesses


SPEAKERS at a conference demanded enactment of the Witness Protection Bill which was drafted in 2006 by the Law Commission aimed at ensuring security of rape victims and witnesses. They made the demand at a national conference on "Rape law Reform", organised by Bangladesh Legal Aid and Services Trust (BLAST), ...

Cricket »

India end 10-year win drought in Australia first Test nail-biter


AFP, Adelaid :India won their first Test on Australian soil in a decade Monday, bowling out the home side in a nail- biting finale to clinch the opening match of the series at Adelaide Oval with Rishabh Pant equalling a world-record along the way.The hosts were set an improbable target ...

 
Items that you save may be read at any time on your computer, iPad, iPhone or Android devices.
 
Are you new to our website? Do you have already an account at our website?
Create An Account Log in here
Email this news to a friend or like someone
Email:
Write a comment to this news