Leather development authority demanded

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 towards 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 need for the establishment of a Leather Development Authority directly under the Prime Minister’s Office or for the management of the Tannery Industrial Estate to be brought under the purview of the Bangladesh Export Processing Zones Authority. They believe that such measures would accelerate the implementation of necessary reforms and bolster the growth of the leather sector in the country.

M Abu Eusuf, Executive Director of Research and Policy Integration for Development, delivered the keynote paper at the seminar.

During his address, he emphasized the ambitious goal of achieving a $ 12.5 billion export target by 2030, which would necessitate an accelerated growth rate of 34 percent.

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

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

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

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

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

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

MD Diljahan Bhuiyan, Senior Vice-Chairman of the Bangladesh Footwear Leather and Leather Goods Export Association, also concurred with the proposal for a Leather Development Authority. He acknowledged the initial delay in recognizing the significance of LWG certification but emphasized its eventual recognition as essential for their business.

Tapan Kanti Ghosh, Senior Secretary of the Commerce Ministry, who attended as the chief guest, acknowledged the diverse topics discussed at the event. However, he emphasized his focus on exports and expressed concern about the challenge of increasing exports despite the abundance of resources.

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