Tannery employees labor in Savar, Bangladesh factory
A glimpse into the Savar leather industry on the outskirts of Dhaka, Bangladesh, reveals a sector grappling with challenges but brimming with potential for a comeback. Despite the struggles, workers tirelessly continue their craft.
The industry confronts numerous obstacles, including shoddy rawhide preservation, unfair pricing, and failing to meet global environmental and quality standards. To add fuel to the fire, none of the tanneries in the Savar Leather Industrial Park have secured international certification from the Leather Working Group, cutting off Bangladesh from premium global leather markets. Chinese importers amplify the woes by offering rock-bottom prices for rawhide, driving down the local market. The burgeoning market for synthetic leather further reduces demand for authentic leather products from Bangladesh.
The government is wrought with criticism for unilaterally setting price policies that lack consultation with industry stakeholders, fostering distrust and fostering manipulation by syndicates. Infrastructure decay is yet another hurdle, with a decrepit Central Effluent Treatment Plant in Savar and a scarcity of suitable rawhide storage facilities beside the tannery estate.
Yet, there's a glimmer of hope! The government plans to address rawhide preservation concerns by constructing storage sheds beside the Savar tannery estate and in other major leather hubs like Chattogram and Natore. Industry leaders ardently advocate for LWG certification, believing that it could potentially double Bangladesh’s leather export earnings by granting access to high-value markets.
Green financing, policy backing equivalent to that of the garment sector, and the appointment of internationally recognized operators for treatment plants are seen as essential steps to rejuvenate the industry. The government is also mulling over lowering customs duties on essential imported tanning chemicals to shrink production costs. While this is seen as a step in the right direction, industry representatives argue that the proposed tariff reliefs are not substantial enough to make a sizeable impact, stressing the need for consistent policies and genuine tax reductions.
Despite producing over 350 million square feet of leather yearly, merely 20 to 25 percent is processed domestically, often exported unprocessed at low prices, mostly to China through middlemen. Improvements in local processing could boost value addition and earnings.
The future of the Savar leather industry rests on tackling these systemic issues and aligning with global market demands and standards. As the industry persists in the face of these challenges, progress is a beacon of hope on the horizon.
The government's decision to construct storage sheds for rawhide in Savar, Chattogram, and Natore, alongside the advocacy for LWG certification, aims to double Bangladesh's leather export earnings by granting access to high-value markets. Green financing, policy backing comparable to the garment sector, and the appointment of internationally recognized operators for treatment plants are essential to rejuvenate the industry and align it with global market demands and standards.
