27-05-2025
Bangladesh's leather exports drop 64% in 10 yrs as CETP not complete
Bangladesh's leather exports have dropped by over 64 per cent in the last decade, primarily due to non-completion of the central effluent treatment plant (CETP) at the Savar Tannery Estate—a key requirement for obtaining international environmental certifications.
As leather exports fell from worth $397 million in fiscal 2013-14 (FY14) to just $142.54 million in FY24, exporters cite the stalled CETP as the single biggest hurdle to achieving Leather Working Group (LWG) certification, the globally recognised benchmark for environmental compliance in production.
Bangladesh's leather exports have dropped by over 64 per cent in the last decade, primarily due to non-completion of the central effluent treatment plant at the Savar Tannery Estateâ€'a key requirement for obtaining global environmental certifications. Trade body LFMEAB called for immediate action, including appointing an accredited operator for CETP and offering green financing.
Without that certification, Bangladesh's leather is not acceptable in premium global markets, Syed Nasim Manzur, president of the Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB), told an event organised recently by the Dhaka Chamber of Commerce and Industry (DCCI).
Following years of resistance, tanneries were relocated from Hazaribagh area in Dhaka to the capital's outskirts Savar in 2017. The move was aimed at improving environmental standards, but the CETP still remains incomplete and largely non-functional.
Unable to meet the strict compliance demands of leading global brands, Bangladesh consequently sells leather at cut-price rates to Chinese intermediaries, according to domestic media outlets.
Manzur called for immediate action, including appointing an internationally-accredited operator for the CETP, offering green financing and extending the same policy support enjoyed by the readymade garment sector. These include bonded warehouse facilities and duty-free imports of machinery.
A fully-functioning CETP could potentially double leather exports, Manzur added.
Fibre2Fashion News Desk (DS)
