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Dhaka, June 5, 2025: Bangladesh’s leather industry is grappling with a deepening crisis, exacerbated by the lack of bank loans for purchasing hides during the upcoming Eid-ul-Adha, plummeting prices, and additional tariff pressures from Chinese buyers. Industry insiders report that leather, once sold at $1.40 per square foot in Hazaribagh, now fetches only $0.45. Approximately 800,000 square feet of leather remain unsold, awaiting shipment.
Ashikur Rahman, Vice Chairman of the Bangladesh Tanners Association, stated, “Last year, we sold leather at 72 cents, but this year it started at 45 cents. The domestic footwear market is 90% import-dependent, leaving us with a minimal share.” He warned that without a shift in government policy, the sector faces a bleaker future.
CETP and LWG Certification: Industry leaders see obtaining Leather Working Group (LWG) certification as a critical step toward recovery. This requires improvements in the Central Effluent Treatment Plant (CETP) and solid waste management. Golam Shahnewaz, Managing Director of Dhaka Tannery Industrial Estate Waste Treatment Plant Company, revealed that a 15-month project funded by the European Union began in March to assess and upgrade CETP’s capacity. Additionally, the government has initiated a Tk 10 crore project to build a safe landfill for solid waste management, which is vital for securing 150 out of the 1,710 points required for LWG certification.
Salt Price Controversy: Sarwar Hossain, head of BISIC’s salt cell, refuted claims of rising salt prices, stating, “Salt prices in Cox’s Bazar have dropped from Tk 300 to Tk 270 per maund. We are supplying it to mills at Tk 13 per kg.”
Challenges and Solutions: Industry leaders emphasize that without coordinated government intervention, the crisis will worsen. Modernizing CETP, enhancing waste management, and achieving LWG certification are essential for the leather industry to remain competitive globally. Failure to act could cast a longer shadow over this vital sector.
AI/MR
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