Export of leather products can earn $16 billion a year

Bangladesh needs to adopt short, medium and long-term plans of action to give a boost to the leather sector aiming to grab a significant share of global market, industry circles said.
The country has the potential to raise its export earnings from leather and leather goods to US$ 16 billion from the present level of US$ 1.0 billion by ensuring environment-friendly infrastructure and diversification of products.
The observations came at the inaugural session of a daylong national seminar Sunday on 'Environmentally-friendly Leather Industries in Bangladesh: A Roadmap to Competitiveness and Sustainability' jointly organised by the Export Promotion Bureau (EPB) and the RMM Leather Industries Limited at a city hotel.      
Industries Minister Amir Hossain Amu was present as the chief guest while Commerce Minister Tofail Ahmed, Environment Minister Anwar Hossain Manju, lawmaker Fazle Noor Taposh, senior commerce secretary Mahbub Ahmed, EPB vice-chairman Shubashish Bose and FBCCI first vice-president Monwara Hakim Ali were present as guests of honour.
RMM Leather Industries chairman Mohiuddin Ahmed Mahin chaired the session while the company's managing director Aniruddha Kumar Roy presented the keynote paper.
In his presentation, Mr Roy presented a roadmap which included short, medium and long-term plans of action for the sustainable development of the leather industry.
Short-term plans included quick implementation of the central effluent treatment plant (CETP) at Savar Tannery Estate to expedite shifting of Hazaribagh tanneries, shifting of wet-blue section of the Hazaribagh tannery area which produces 70 per cent of the total waste in the tanneries in the first phase, ensuring accommodation facilities for skilled and industry-friendly workers of Hazaribagh tanneries at Savar to avoid scarcity of trained workers, abolition of 4.0 per cent tax collection by banks from leathers processed in the local exportable tanneries and supplied to local exportable shoe factories and other leather goods factories.
Among the mid-term proposals, Mr Roy proposed approval and easing of import process of wet blue and pickle to help the local shoe makers, upgradation of the leather research institute to an international standard testing certification institute, conversion of the Dhaka Leather Complex into an environment-friendly leather processing zone, namely Green Leather Industrial Park Pilot Project, among others.
A National Leather Development Board can be formed at the government level for sustainable development of the leather industry and meeting international demand, Mr Roy added in the long-term planning, among others.
Mr Amir Hossain Amu said Hazaribagh tanneries are mostly responsible for  pollution of the Buriganga river along with some other factories.
He said after Rana Plaza incident, the buyers are playing with the readymade garment sector. And now leather industry should proceed in such a way that no further game can be played and pollution can be stopped.
Blaming contractors, Mr Amu said construction of the CETP is going on in full swing now. It was delayed because of the dilly-dallying process of the contractors. He also mentioned that the Bangladesh University of Engineering and Technology (BUET) has been appointed consultant for the CETP project and they said no piling is needed there. "But the contractors say piling is required. They justify it just for increasing the amount of money and we have finally been able to hold them in check," he added.
He said there might be some problems in a new place after shifting. But all the facilities cannot be provided at a time.
Mr Tofail Ahmed said Bangladesh's export volume can reach US$ 50 billion as the government is trying hard to diversify the country's products and export markets.
He said the readymade garment export alone will fetch US$ 30 billion by 2015 while the country would continue to make progress if political stability prevails.   
The commerce minister said many new markets are opening up for Bangladesh like Brazil and Chile. "We'll explore markets in South American countries, including Argentina and Peru," he added.   
About the leather industry's prospect, Mr Tofail said Japan might turn into the biggest market for Bangladesh's leatherwoods and the issue would come up for discussions during the Prime Minister's upcoming Japan visit. He said the confidence has been restored among members of the business community and foreign investors are also increasingly showing interest to invest in Bangladesh.
Mr Anwar Hossain Manju said an industrialist has to take clearance from different authorities to set up an industry and he sets up industry based on his instinct as there is lack of proper information, data and market assessment. He categorically said no authority wants to lose its grip from any place.
Besides, there is a slow decision-making process in Bangladesh although Bangladeshi bureaucrats are becoming more liberal now, he added.    
Mr Fazle Noor Taposh said some dual actions are being taken by the government. It is setting up the CETP on one hand and penalising the Hazaribagh tannery owners for not having ETP which is totally contradictory.
He warned Bangladesh either has to make a choice as to whether it is prepared to earn US$ 16 billion from leather export or become a home of sick industries gradually.
Mr Mahbub Ahmed said US$ 1.0 billion export earning from a US$ 230 billion market is insignificant. He also said although Bangladesh is the second largest RMG exporter, it has a small share of global market worth US$ 400 billion.
He cautioned the leather industry leaders that the buyers might impose environment and labour safety and rights issues in the leather industries as they have done in the RMG sector.