The local leather goods exporters are facing fallouts from the industrial disasters in the ready-made garment (RMG) sector, as the international buyers have become cautious about the safety standards in the leather processing industry as well.
The most of the international buyers declined to import goods made of raw materials processed at tanneries at Hazaribag in Dhaka city due to the hazardous working condition, industry insiders said.
Most of the international buyers became very cautious about the environmental issues and the working condition in factories, from where they were sourcing their products, after the Tazreen Fashions fire and the Rana Plaza collapse, two disasters in the readymade garment (RMG) sector, the sources said.
Under the continuous pressure from buyers, the big players in the local leather market were importing finished leather to tackle the situation, But small and medium capital-based factories were bearing the brunt of the situation, they added.
According to the data available with the estate-owned Export Promotion Bureau (EPB), exports from the finished leather and leather goods sub-sector were less by 7.66 per cent than the target in the first quarter of the current financial year (FY) 2013-14, though the overall exports grew by 26.94 per cent during the same period.
"Orders earlier had been shifting in bulk from China, India and Vietnam to Bangladesh. But the trend has become stagnant after the Tazreen Fashions fire and the Rana Plaza collapse, as buyers have become cautious about compliance standard of the factories, from where they are sourcing their products," Deputy General Manager (DGM) of Dhaka Hide and Skin Ltd Mohammad Rezaul Karim told the FE.
"Many small-cap factories are facing closure in such a situation while the big players in the local leather market are importing finished goods from abroad to comply with the buyers' safety concerns and at the same time meet the demand by sacrificing profits," he added.
Managing Director of Tanzim Leathers, a small-cap leather goods exporter said his company could export goods worth Tk 2.7 million during the first quarter of the current FY against the exports worth around Tk 9.3 million in the corresponding period a year before. Â
"Our buyers are continuously hammering us not to use leathers processed in the hazardous condition at Hazaribagh, the country's main leather processing hub. The unwholesome working condition brought down the growth in our exports in recent times," he added.
"If the government does not take steps to improve the working condition in tanneries immediately, then many factories like us may be closed down very soon," he further said.
However, Bangladesh Tanners Association (BTA) chairman Shaheen Ahmed said an agreement had been signed with the government to relocate the tanneries from Hazaribagh to the Savar tannery estate within the next two years.
 "Tannery owners have in the meantime improved the working condition in their factories significantly. So the buyers have to take it into consideration rather than moving away," Mr Ahmed added.
"Nothing is possible to do overnight. Buyers should understand it. Shifting tanneries to Savar would be a big solution to the crisis," he gave assurance.
At present, there are about 185 tanneries in the city's Hazaribagh area producing about 18.0 million (1.80 crore) cubic metres of processed hide.
Besides, nearly 21,600 cubic metres of liquid waste are discharged by the tanneries everyday. The liquid waste includes chromium, sulphur, ammonia and salt. Other poisonous metals are also being discharged seriously polluting the Buriganga river and the adjoining areas.
Earlier in 1951 the government shifted the tanneries to Hazaribagh from Narayanganj.
In the face of demands voiced by locals and environmentalists both at home and abroad, the government undertook a three-year project in 2003 to relocate the tanneries once again from Hazaribagh to Savar. But due to some bottlenecks, it could not be done. However, a trilateral agreement has already been signed to shift the tanneries to Savar by 2015.
However, according to the National Board of Revenue (NBR), Bangladesh spent over Tk 4.5 billion on import of finished leather and rawhide in the last fiscal year.
Different international rights groups including the Human Rights Watch are widely publicising the hazardous working condition in Bangladeshi tanneries and convincing importers not to import goods made of leather processed by the tanneries at Hazaribagh.
They also are campaigning among foreign nationals not to use such products saying that the tanners do not maintain environmental standards and also do not comply with the health-related laws and labour rights.
The New York-based international NGO alleged tanneries at Hazaribagh 'did not respect' both national and international environmental standards.
Tanners bear brunt of int\\\'l buyers\\\' safety concerns
Badrul Ahsan | Published: November 04, 2013 00:00:00 | Updated: November 30, 2024 06:01:00
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