Board of Tannery to promote the leather industry

On Sunday, leaders from the Tannery Workers Union, the Bangladesh Tannery Association, and the Bangladesh Footwear Leather and Leather Goods Export Association jointly urged the government to take decisive steps toward the development and reform of the country’s leather sector. They made this appeal during a seminar titled ‘Bangladesh Tanneries: Towards Compliance,’ which was organized by The Asia Foundation and the Bangladesh Labour Foundation at a hotel in the capital.

During the seminar, the trade bodies and the trade union emphasized the urgent need to establish a Leather Development Authority directly under the Prime Minister’s Office or to bring the management of the Tannery Industrial Estate under the Bangladesh Export Processing Zones Authority. They believe such measures would accelerate necessary reforms and foster the growth of the leather sector in the country.

The keynote paper at the seminar was delivered by M Abu Eusuf, Executive Director of Research and Policy Integration for Development. He emphasized an ambitious goal of achieving a $12.5 billion export target by 2030, requiring an accelerated growth rate of 34 percent.

Eusuf proposed the establishment of a Leather Development Authority under the Prime Minister’s Office or bringing the Tannery Industrial Estate management under BEPZA.

He urged urgent attention to the effective functioning of the Central Effluent Treatment Plant (CETP), emphasizing the need for maintenance and a long-term sustainability plan.

Additionally, Eusuf suggested that the Bangladesh Bank consider providing long-term soft loans of Tk 500 crore with zero interest to entrepreneurs. This loan would allocate Tk 300 crore for CETP and Tk 200 crore for individual ETPs for ten large enterprises over a 15-20 year period.

Furthermore, he encouraged the preparation of at least 15 factories for Leather Working Group (LWG) certification within the next five years.

Abul Kalam Azad, President of the Tannery Workers Union, echoed Eusuf’s proposal for a Leather Development Authority and highlighted the sector’s potential, calling for collective efforts from stakeholders to capitalize on opportunities.

Md Shakawat Ullah, General Secretary of the Bangladesh Tannery Association, expressed agreement with Eusuf’s suggestion, stating that tanneries were no longer a burden but valuable assets.

MD Diljahan Bhuiyan, Senior Vice-Chairman of the Bangladesh Footwear Leather and Leather Goods Export Association, also supported the proposal for a Leather Development Authority and stressed the importance of LWG certification for their business.

As the chief guest, Tapan Kanti Ghosh, Senior Secretary of the Commerce Ministry, acknowledged the diverse topics discussed at the event. He expressed his focus on exports and concerns about increasing exports despite available resources.

The program was chaired by Abdus Salam Khan, Chairman of the Bangladesh Labour Foundation.