Leather industry relocation to Savar a 'classic case of mismanagement': Minister Muktadir
The minister said Bangladesh could turn the leather sector into a $10-12 billion export industry if it is developed properly.
Commerce, Industries, and Textiles and Jute Minister Khandakar Abdul Muktadir today (29 May) described the relocation of the leather industry from Hazaribagh to Savar as "a classic case of mismanagement", although he said the decision itself was correct.
"But the way the relocation was carried out was a classic case of mismanagement. As a result, the central effluent treatment plant is not functioning at its intended capacity, and many of the businesses that moved here could not survive. Several industrial establishments disappeared midway," he said.
Speaking to reporters after visiting the Savar Leather Industrial Park, the minister said industries producing high levels of waste should be located where proper waste treatment facilities are available.
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The minister said the government is now focusing on increasing the capacity of the central effluent treatment plant, which was designed to process 25,000 cubic metres of waste daily, and on introducing chromium recovery facilities.
He also said the government is working to revive businesses that became inactive or financially distressed following the relocation process and exploring ways to attract new investors to the sector.
Referring to an assessment report by an Italian company under a European Union initiative, Muktadir said the report is expected soon. He added that businesses willing to install their own effluent treatment plants would receive technical, financial and policy support from the government if necessary.
The minister said Bangladesh could turn the leather sector into a $10-12 billion export industry if it is developed properly.
Responding to a question from The Business Standard regarding the losses faced by seasonal traders, madrasas and orphanages selling sacrificial hides – as tannery and warehouse owners allegedly haggled over prices and acted arbitrarily in offering fair rates for raw, blood-stained hides brought from Dhaka and nearby districts after Eid, due to the government not setting a floor price for such unsalted hides based on size despite fixing prices for salted hides – the minister described rawhides as a "perishable" product.
"Salted hides have value, but unsalted hides have no longevity. Who will buy them?" he said, urging traders and sellers to preserve hides with salt within the stipulated time.
Every year on the first day of Eid-ul-Adha, the vast majority of hides entering the industrial zone are raw, blood-stained hides. These hides are usually collected and brought for sale within a very short time after the sacrifices are made, and in most cases, salt is not applied to them. Moreover, the volume of such blood-stained hides is also significant.
From yesterday afternoon, when the hides started arriving at the industrial zone, until 11am today, a total of 4,91,949 sacrificial animal hides entered the area. With hides from the second day of Eid sacrifices also arriving, the number of hides entering the industrial zone continues to increase over time.
Replying to allegations of collecting Tk1,000 from each hide-laden truck entering the industrial estate and Hemayetpur leather market, the minister said the relevant authorities would take action if evidence or complaints are received.
