‘Exporters are paid 40% less for leather products due to lack of compliance’

Exporters of leather and leather products have been receiving up to 30–40 % less price from international buyers noted speakers at a webinar on Tuesday (31 May).

"The export of Bangladeshi leather and leather goods is facing a drawback since the Savar Leather Industrial Park does not have a Leather Working Group (LWG) certification," the issue was discussed during a webinar "An Assessment of the Impact of COVID-19 on Tanneries", jointly organised by the Economic Reporters' Forum (ERF), RAPID and The Asia Foundation (TAF).

Executive Director of Research and Policy Integration for Development (RAPID) Dr Abu Eusuf also presented a paper on the topic, 'Covid -19 Impacts on Tanneries: Charting recovery in the post-pandemic world.'

To ensure compliance in the leather sector, the Ministry of Industries, the Ministry of Environment, Forest and Climate Change and the Ministry of Labour and Employment must work together, recommended the speakers. 

"A leather sector development authority should be formed," they suggested adding that if this is done, it is possible to earn $10 billion from leather and leather products by 2030.

Dr Abu Eusuf said, "During the coronavirus pandemic, the demand for leather has decreased in the global market. This had a major impact on the leather sector."

"Recovering from the pandemic, impacts will critically rely on Environmental, Social, and Quality (ESQ) compliance and obtaining LWG certification," he added. 

"The lack of a fully operational Central Effluent Treatment Plant (CETP), as well as chromium and solid waste management at the Savar tannery cluster, has proven to be a significant impediment. The leather tanning sector has been struggling to ensure Environmental, Social, and Quality (ESQ) compliance," he remarked. 

"The remaining 2% construction work of the CETP of Savar Leather Industrial Park has not been completed in the last two years. This is why the Park has failed to apply for the certification of the Leather Working Group (LWG)," he explained. 

General Secretary ERF SM Rashidul Islam presided over the programme and ERF President Sharmeen Rinvy also spoke at the webinar. 

The Asia Foundation Country Representative Kazi Faisal Bin Seraj, Industries Secretary Zakia Sultana, Leathergoods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) President and Managing Director of Apex Footwear Ltd Syed Nasim Manzur were present, among others.