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When will the crisis in the leather industry in Bangladesh be eliminated?

When will the crisis in the leather industry in Bangladesh be eliminated?

The relocation of the tannery industry from Hazaribagh in Dhaka city to the Tannery Industrial Park in Savar has taken a long time for the factories to resume production and the domestic leather has not been able to achieve exportable quality. The country’s leather industry is in crisis due to growth.

Despite being the second largest foreign exchange earning sector in the country, the leather industry has less government facilities than the garment industry, making it impossible to achieve the desired export earnings target. Besides, on Eid-ul-Adha, a class of traders left extra time for themselves without proper storage of leather. As a result, the quality of leather is lost and the value of international exports is reduced. These have also exacerbated the crisis in the leather sector.

Last Eid-ul-Adha, a special report by a government intelligence agency on the demand, production, supply and decline of the sacrificial animal industry said that leather and leather products are currently the second largest export-oriented sector in the country. More than 50 percent of the annual supply of raw hides, the mainstay of the leather industry, comes from the sacrificial animals of the holy Eid al-Adha.

Although the number of sacrificial animals has increased compared to last year, this potential sector has been continuously counting losses for the last three years.

According to the report, about 9 lakh people are directly and indirectly involved in this sector. The government has already taken several steps for the development of the industry, including shifting the tannery from Hazaribagh to Savar, but the industry has not been able to get out of the crisis.

A large part of the demand for leather and leather products in the country is met through imports. In the development of the domestic leather industry, it is possible to meet the domestic demand and capture the market by producing quality products by reducing the dependence on exports as well as imports.


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