Bangladesh leather goods exporters brace for tough battle

26 Feb '18
2 min read

Footwear and leather goods exporters in Bangladesh foresee a tough battle ahead in the global market following the Indian Government’s recent announcement of a three-year special package worth $404.7 million for the sector's revival. Both the nations export such products to the same destinations like the European Union, the United States and Japan.

Apart from this challenge, delays in relocating the tanneries from Hazaribagh to the newly-built leather estate in Savar and partial operation of the central effluent treatment plant at the estate are also problems Bangladeshi exporters have been facing over the last two years, a top Bangladesh newspaper quoted Saiful Islam, president of the Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh, as saying.

In the first seven months of the current fiscal, export of leather and leather goods declined 4.61 per cent in Bangladesh to $709.51 million — 9.79 per cent less than the periodic target, according to data from the country’s Export Promotion Bureau.

As all the tanneries are yet to become fully operational at the estate, there is a crisis of finished leather as well, Islam said. At present, 105 out of 155 tanneries have started operations in the estate.

More than 3,000 small- and medium-scale footwear, leather and leather goods factories would be in trouble because of the Indian package, Islam added. (DS)

Fibre2Fashion News Desk – India

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