Leather sector can become $12b export industry if fully utilised: Industries minister
The government is considering allowing capable tanneries to establish their own treatment plants, with state support if necessary, he says
Bangladesh's leather industry could grow into a $12 billion export sector if the country fully utilises its annual leather production, Industries Minister Khandaker Abdul Muktadir said today (16 May).
"The leather sector, which has strong potential, has failed to progress as expected due to years of negligence and mismanagement after the relocation of tanneries from Hazaribagh to Savar in 2017," the minister told reporters after a meeting with tannery owners, business leaders and stakeholders at the conference room of the BSCIC Tannery Industrial Estate in Savar.
Representatives from the Bangladesh Tanners Association and the Bangladesh Finished Leather, Leather Goods and Footwear Exporters' Association attended the meeting.
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Muktadir, who also serves as the minister for industry, textiles, and jute noted that the country's export sector is heavily dominated by the RMG industry, which holds around 85% of total exports.
Following the meeting, he visited the Central Effluent Treatment Plant (CETP) at the industrial estate, acknowledging operational constraints during peak production periods.
He said the CETP currently struggles to handle the 45,000 cubic metres of waste generated during peak seasons such as Eid-ul-Adha, with existing capacity ranging between 14,000 and 18,000 cubic metres depending on pre-treatment at factory level.
"To address the issue, the government is considering allowing capable tanneries to establish their own treatment plants, with state support if necessary," the minister added.
The minister further said a study, supported by the European Union, is underway to assess how the CETP can be made more efficient and expanded in capacity. "The findings are expected within the next few weeks."
Muktadir also announced plans to establish a world-class centre in Savar focused on skill development, design improvement and technological advancement for the leather industry.
According to the minister, the proposed centre will include facilities for light engineering, 3D leather design and professional training, and will be operated with support from an internationally recognised institution.
During the meeting, business leaders raised various concerns regarding the CETP and broader challenges facing the leather industry.
