Home Today's Paper Most Popular Video Gallery Photo Gallery
Subscription Blog Signin Register
Tuesday, September 25, 2018 11:54:15 PM
Follow Us On: Facebook Twitter Twitter Twitter Twitter

Leather export declined 12pc

photo by

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."

Add Rate

News Archive

Inside The New Nation

Editorial »

Maldives' people reject authoritarian rule and voted for democracy

MALDIVES strongman President Yameen Abdul Gayoom conceded that he lost Sunday's election to his challenger Ibrahim Mohamed Solih, in a speech broadcast live on television Monday, according to the international media. Mr Yameen congratulated Solih and said, "I know I have to step down now."  The Election Commission said voter ...

Cricket »

'Rashid is best but not unplayable' says Mahmudullah

Mahmudullah Riyad sorted out a vigorous 74 against Afghanistan rescuing Bangladesh from a plausible downfall.Mahmudullah Riyad and Imrul Kayes stood tall in the middle when the team was languishing losing all five in the top order in a score of 87 on the board. The duo added 128 runs in ...

International »

Thousands attend funeral for Iran attack dead

AFP :Tens of thousands of mourners attended a funeral on Monday in the southwestern Iranian city of Ahvaz for soldiers and civilians killed in an attack on a military parade.Four militants attacked the Saturday parade marking the start of the 1980-1988 Iran-Iraq war, spraying the crowd with gunfire and killing ...

City »

Prime Minister Sheikh Hasina addressing a reception accorded to her by the expatriate Bangladeshis at a hotel in New York on Sunday.

Entertainment »

Mehazabien, Apurba in Puja special play

Sheikh Arif Bulbon :Popular pair of the small screen of present time Mehazabien Chowdhury and Ziaul Faruk Apurba worked together in a special play of Durga Puja for the first time. Title of the play is Priyo Tumi. Directed by Mahmudur Rahman Himi story of the play is written by ...

Editorial »

Attack on Iran`s elite guards

IRANIAN Supreme Leader Ayatollah Ali Khamenei accused US-backed Gulf Arab states of carrying out a shooting attack on a military parade that killed 25 people, almost half of them members of the country's elite Revolutionary Guards. Khamenei ordered security forces to bring to justice those responsible for one of the ...

Sports »

Bertens defeats Tomljanovic to secure Korea Open win

AFP, Seoul :Kiki Bertens defeated Australia's Ajla Tomljanovic in the Korea Open final on Sunday, securing her third WTA Tour singles title of the season to continue her career-best year.The second-seeded Bertens came back from break down in the deciding set to defeat the Australian in two hours and 22 ...

International »

World leaders gather at UN under threat from unilateralism

AP, United Nations :With rising unilateralism challenging its very existence, the United Nations convenes its annual meeting of world leaders Monday and will try once more to tackle problems together as a community of nations, addressing threats ranging from Mideast conflicts to the effects of global warming - and also ...

City »

National Professor Anisuzzaman seen among others at the cover unveiling ceremony of a book marking the 80th birthday of eminent writer Hasan Azizul Haq organised by Bangladesh Culture at Jatiya Press Club yesterday.

Entertainment »

Nazira Mou to debut in film with Indraneil

Sheikh Arif Bulbon :Viewers’ choice popular actress Nazira Mou has been acting in small screen for many days. She got many offers for acting in big screen. But she did not agree to act due to disliking stories and her roles in those works. When Mou got the proposal from ...

Editorial »

CPJ reveals weakness of journalists by appealing to President

THE Committee to Protect Journalists (CPJ) in a letter to the Bangladesh President has expressed deep concern about the Digital Security Act 2018, which was passed by the Parliament on September 18, and urged him to return it to Parliament for a review afresh.   If this legislation was allowed to ...

International »

Modi faces calls for resignation over French jet deal

Reuters, New delhi :Indian Prime Minister Narendra Modi faced calls for his resignation over allegations of corruption in a military jet deal with France after former French president Francois Hollande was quoted as saying New Delhi had influenced the choice of a local partner.Indian political parties have been gunning for ...

International »

US official in Russia probe suggested taping Trump: Report

Reuters, Washington: The US official who oversees the federal investigation into Russia's role in the 2016 U.S. election suggested secretly recording President Donald Trump last year and recruiting Cabinet members to invoke a constitutional amendment to remove him from the White House, the New York Times reported on Friday.Deputy Attorney ...

Football »

Tabarez renews with Uruguay until Qatar World Cup

AFP, Montevideo :Despite failing health the veteran coach Oscar Tabarez has signed a four-year contract extension to remain at the Uruguay helm until the end of the 2022 World Cup in Qatar, the South American country's football federation said on Friday.Tabarez, who suffers from a nerve disorder that forces him ...

City »

People of the Shia community brought out a Tazia procession in the city on the occasion of Holy Ashura. The snap was taken from Azimpur area on Friday.

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
Write a comment to this news