Dhaka: The government is working on an integrated reform plan to revive Bangladesh's leather industry and restore its position in the global market by reforming the tannery sector, attracting new investment, and ensuring internationally compliant production systems. Commerce, Industries, and Textiles and Jute Minister Khandakar Abdul Muktadir announced this at a policy dialogue titled 'Advancing Bangladesh's Leather Sector: Challenges, Opportunities, and Reform' at BRAC Centre Inn in the capital on Thursday.
According to United News of Bangladesh, the minister highlighted that although relocating tanneries from Hazaribagh to Savar was a sound decision, poor implementation and management have hindered the industry's progress. To address this, the government plans to facilitate a 'graceful exit' for tannery owners who are no longer interested in making fresh investments, thereby paving the way for new entrepreneurs and investors.
Muktadir emphasized the necessity of ensuring 100 percent compliance in the tannery sector. He stated that obtaining certification from the Leather Working Group (LWG) will be mandatory to enhance Bangladesh's acceptance in international markets. The government also aims to establish a 'Bangladesh Leather' brand by focusing on exporting finished leather goods instead of raw hides.
Addressing a significant challenge, the Central Effluent Treatment Plant (CETP) in Savar, the minister noted that a new world-class CETP is planned, and the renovation of the existing facility is under consideration. The current plant can only treat around 14,000-15,000 cubic meters of waste, far below its intended capacity of 25,000 cubic meters.
Muktadir outlined plans for large tanneries to install their own effluent treatment plants (ETPs), while smaller tanneries will need to comply fully by coordinating with the central CETP system. Additionally, the government intends to convert solid tannery waste into usable products like tallow and bone meal, transforming the Savar Tannery Industrial Estate into an integrated waste-management zone.
To broaden market access for leather and leather goods, the government is working on securing greater trade facilities in Japan, South Korea, and Europe. Muktadir also mentioned plans to attract investment from major leather industry companies in Spain and Italy and to establish a skills and design development center in Savar by 2027.
The minister concluded that the government aims to reclaim the leather sector's stronghold in global markets by enhancing workers' skills, strengthening design capabilities, promoting eco-friendly production, facilitating investment, ensuring proper ETP facilities, and resolving bonded warehouse issues. The policy dialogue gathered policymakers, industry representatives, and other stakeholders to discuss the challenges and opportunities within Bangladesh's leather sector.