As Eid-ul-Adha approaches, Bangladesh's leather sector finds itself at a critical juncture. The government's recent decision to temporarily lift the ban on raw leather exports primarily to support the underprivileged class which relies on rawhide collection during Eid, has once again revived a longstanding debate. The debate is, if exporting raw leather is merely a blessing for the poor or a curse for the nation's industrial ambitions. While this policy offers short-term relief and liquidity to grassroots collectors, it threatens Bangladesh's long-term potential to become a global powerhouse in finished leather goods.
Bangladesh is uniquely positioned for leather sector growth. With over nine million cattle processed annually, especially during Eid, the country has abundant rawhide supply. However, exporting raw leather-earning less than $2.0 per square foot-yields only a fraction of the value compared to finished goods like bags and shoes, which sell for $15-$50 per square foot. As the nation moves towards LDC graduation, exporting low-value raw materials could jeopardise the opportunity to build a high-value export sector.
Global dynamics further favour Bangladesh. Amid US-China tensions, Western brands are actively seeking alternatives to Chinese suppliers. With its competitive labour costs and raw material availability, Bangladesh is well-placed to step in. The country already produces over 400 million pairs of shoes and 80 million bags annually-proving its production potential.
However, structural challenges persist. The Central Effluent Treatment Plant (CETP) at Savar remains only partially functional, threatening compliance with international environmental standards. Only three of 220 tanneries currently hold Leather Working Group (LWG) certification-essential for premium market access. Without certification, Bangladeshi exporters often sell leather at discounted rates to intermediaries abroad, who then resell finished products at a premium.
With LDC graduation looming and preferential trade benefits fading, Bangladesh must act now. Industry experts estimate that with full CETP operation, proper policy incentives, and export duties on rawhide, the country could capture up to 10 per cent of China's leather market, generate $10 billion in exports, and create over 100,000 jobs. This will also require a comprehensive national policy and programmes under it for workforce upskilling, R&D investment, and global standard compliance.
The short-term benefits of rawhide exports must not overshadow the long-term national interest. Bangladesh must choose value addition over volume and build a resilient leather industry that can thrive in global markets.
Shehwa Tahreem Amin
anuvuanuvu17@gmail.com
