Bangladesh鈥檚 leather sector holds significant export potential and has access to high-quality raw leather from domestic sources, but it is facing stagnation due to persistent compliance issues, according to tanners and industry experts.
Global buyers are refraining from importing leather goods from Bangladesh as the country鈥檚 leather industry continues to fall short in meeting compliance requirements.
The sector has struggled to achieve substantial export growth owing to ongoing problems with waste management and effluent treatment standards.
This failure to meet international environmental regulations has reportedly deterred foreign buyers and investors, thereby hindering the sector from realising its substantial potential in the global marketplace.
To ensure effective oversight of this vital infrastructure, stakeholders have proposed placing the Central Effluent Treatment Plant (CETP) under the direct supervision of the Prime Minister鈥檚 Office or the Bangladesh Export Processing Zones Authority (BEPZA).
Talking to UNB, tanners and exporters voiced their concerns regarding longstanding issues in the leather sector, which have been widely discussed but remain unaddressed in terms of implementation.
The Bangladesh Small and Cottage Industries Corporation (BSCIC), the current overseeing body, is deemed unable to manage such a large and complex sector.
Shakhawat Ullah, General Secretary of the Bangladesh Tanners Association, recalled the forced relocation of approximately 222 tanneries to the Savar Tannery Estate in 2017鈥攁t a time when the CETP was not yet operational and solid waste management systems were inadequate.
He expressed disappointment that the industry鈥檚 hopes were dashed, as the relocation failed to deliver on the promise of a compliant and environmentally friendly industrial zone.
Echoing these concerns, Shahin Ahmed, Chairman of the Bangladesh Tanners鈥� Association, called for the formation of a Leather Development Board under the Chief Adviser鈥檚 Office.
He also criticised the inefficiency of the restructured waste management authority, noting that its managing director now visits the leather estate regularly but without visible improvements.
Ahmed emphasised the 鈥榙elicate condition鈥� of the CETP and the bureaucratic bottlenecks hindering progress on compliance, despite at least 20 tanneries having the potential to obtain Leather Working Group (LWG) certification.
Md Diljahan Bhuiyan, Vice Chairman of the Bangladesh Finished Leather, Leather Goods and Footwear Exporters鈥� Association (BFLLFEA), underlined the growing importance of LWG certification as a prerequisite for exporting leather goods.
He acknowledged that while some leather industries are capable of meeting LWG standards, mismanagement and misguided policies by government entities have indirectly contributed to the sector鈥檚 decline by creating unnecessary barriers.
According to export data, the leather sector鈥檚 earnings stood at $1.13 billion in 2012, dropping to $970 million in 2024. Despite abundant rawhide supply, other industries have seen significant development, whereas the leather industry has lagged behind.
Abu Eusuf, a Dhaka University professor, said the previous government had set an ambitious target of US$12 billion in leather exports by 2030, which would require a 40 per cent growth rate.
He pointed to the current stagnation since 2017 due to compliance failures and proposed a range of solutions, including the formation of a Leather Development Board, a functional CETP, facilitation of LWG certification for at least 15 factories, provision of low-interest loans, and the establishment of a Central Bonded Warehouse for the Tannery Industrial Estate.
He stressed the importance of specialised technical knowledge and entrepreneurial skills for sustainable sectoral growth. Foreign Direct Investment (FDI) is also crucial to unlock the sector鈥檚 full potential.
Mohammed Mizanur Rahman, Director of the Institute of Leather Engineering and Technology at Dhaka University, highlighted that Bangladesh produces 3 per cent of the world鈥檚 raw materials and could potentially generate around US$15 billion in annual exports if properly utilised.
He identified CETP non-compliance as a key obstacle and called for accountability for those responsible for its current shortcomings.
