The fast establishment of a subcommittee is planned to tackle urgent problems in Bangladesh’s leather industry, with an emphasis on increasing export revenue. Following a meeting with commerce and finance experts at the finance ministry, Mohiuddin Ahmed Mahin, Chairman of the Bangladesh Finished Leather, Leathergoods, and Footwear Exporters’ Association, made this announcement.
Mohiuddin announced that more talks to investigate the unrealised potential in the leather sector will take place with the advisor. He made it clear that the factories in the Savar Tannery Industrial Estate are not allowed to sell leather on the local market and only work for export.
He expressed worries about the Central Effluent Treatment Plant’s (CETP) current state of functioning at the Savar estate, stating that its malfunction leads them to sell products at 70–80 per cent less than the rates of the worldwide market, which makes it difficult for them to add value to their exports. “The CETP’s incapacity is also preventing us from achieving a balance between leather buying and selling prices,” he stated.
Leaders in the business have received assurances from the advisor that these problems will be dealt with quickly. MA The Bangladesh Finished Leather, Leathergoods and Footwear Exporters’ Association’s chief adviser, Rashid Bhuiyan, blasted earlier government actions that forced the sector to move to the Savar estate despite a dearth of essential infrastructure.
“We were duped and forced into this situation by the officials of the previous government,” Rashid said, hoping that the new adviser would allay their worries. Noting the detrimental effects of not receiving the Leather Working Group (LWG) certificate on their business, he stressed that the major demand still remains the full operating state of the CETP.
Regarding Hazaribagh’s red zone assets, Rashid reported that talks were continuing regarding conceivably removing certain areas through joint ventures, opening up new avenues for corporate growth.
