Leather imports worth Tk 1,500 crore annually in the country of leather

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Leather imports worth Tk 1,500 crore annually in the country of leather

The country of leather imports leather worth Tk 1,500 crore annually. To export shoes to developed countries, an international LWG certificate is required.

This certificate is not available because the leather processing system is not CETP standard.

Leather imports worth Tk 1,500 crore annually in the country of leather

Only 8 institutions in the country have international LWG certificates.

Written by:

Yahiya Naqib, Dhaka

Published: 21 June 2025, 10:00

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Leather files arranged for sale at a leather market Photo: Prothom Alo

Leather is one of the country’s own raw material-based export products. It is the country’s second major export product, which is now facing various challenges. International certification is not available due to questions about the quality of the environment and waste management. It can be said that the price of leather has not increased but has decreased in the last decade. The foreign market is shrinking. Is that all? This country, famous for raw leather, now has to import leather from abroad. For this, about 1500 crore taka is spent annually.

Analysts say that to export shoes to developed countries, it is necessary to have an International Leather Working Group (LWG) certificate; but this certificate is not available because the leather processing system, i.e. the Central Effluent Treatment Plant (CETP), in the country is not of that standard. Therefore, despite the quality of their own leather, the country’s export-oriented shoe companies have to import leather products from countries such as China, Brazil, Australia, Pakistan, etc.

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The country of leather imports leather worth 1,500 crore taka annually

To export shoes to developed countries, an international LWG certificate is required.

This certificate is not available because the leather processing system is not CETP-compliant.

Only 8 companies in the country have international LWG certificates.

Written by:

Yahiya Naqib, Dhaka

Published: 21 June 2025, 10:00

Follow

Leather files arranged for sale at a leather market Photo: Prothom Alo

Leather is one of the country’s own raw material-based export products. It is the country’s second major export product, which is now facing various challenges. International certification is not available due to questions about the quality of the environment and waste management. It can be said that the price of leather has not increased but has decreased in the last decade. The foreign market is shrinking. Is that all? This country, famous for raw leather, now has to import leather from abroad. For this, about 1500 crore taka is spent annually.

Analysts say that to export shoes to developed countries, it is necessary to have an International Leather Working Group (LWG) certificate; but this certificate is not available because the leather processing system, i.e. the Central Effluent Treatment Plant (CETP), in the country is not of that standard. Therefore, despite the quality of their own leather, the country’s export-oriented shoe companies have to import leather products from countries such as China, Brazil, Australia, Pakistan, etc.

According to Bangladesh Bank, leather and leather products worth Tk 1,496 crore were imported into the country in the last fiscal year 2023-24, which was Tk 1,563 crore in the previous fiscal year 2022-23. And in the six months from October to March of the current fiscal year 2024-25, leather products worth about $80 million or Tk 976 crore were imported. These imports include leather and leather products, travel bags, handbags, products made of animal intestines and horse grooming products, etc.

When asked, Professor Md. Abu Yusuf, Department of Development Studies, Dhaka University, told Prothom Alo that to get LWG certificate, 300 marks out of a total of 1,710 marks have to be obtained in CETP; but the government could not build it properly. Therefore, 15-16 tanneries in Savar are not getting LWG certificate despite being of good quality. Therefore, the demand for leather is not increasing, and the appropriate price is not being met.

Md. Abu Yusuf said, “Since the country’s tanneries are not compliant with international standards, they are forced to import leather from abroad. Although our country’s leather is of sufficient quality. In 2016, we exported leather products worth 1.2 billion or 1.2 billion dollars. After 10 years, exports are still around that one billion dollars. However, at the same time, Vietnam has increased it to 20 billion dollars.”

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