Sakif Shamim Managing Director, Labaid Cancer Hospital & Super Speciality Centre
Bangladesh's leather industry has emerged as an auspicious sector for the country's economic growth. After the ready-made garment (RMG) industry, it is considered to be the second-largest earner of foreign currency.
However, to become a global leader in the leather market, Bangladesh needs more than just potential; it requires a well-planned strategy, the use of modern technology, and appropriate policy support.
The global market for leather and leather products is valued at over $400 billion and is projected to grow to $550–$600 billion by 2030. Bangladesh's share in this vast market remains very limited, and increasing it will require a comprehensive and long-term strategy.
The primary condition for the leather industry to achieve global standards is the modernization of its technology. Bangladesh must move away from traditional tanning methods and adopt eco-friendly, advanced technologies. Although old tanneries from Hazaribagh were relocated to Savar, environmental pollution remains a major challenge. The Central Effluent Treatment Plant (CETP) in the Savar leather industrial park is not fully operational, resulting in continued pollution of rivers and the surrounding environment.
To enter the international market, it is essential to reduce the industry's carbon footprint and comply with environmental regulations. This requires the use of high-quality chemicals and advanced technology to make the tanning process more environmentally friendly. Additionally, using automation and digital technology at every stage of the production process can increase the industry's efficiency and product quality. Adopting modern technology from the design phase to the finishing of leather goods can reduce waste and production costs, making Bangladeshi products more competitive in the international market. To encourage local entrepreneurs in this technological shift, it is crucial to provide loans and government assistance with flexible terms.
Modern methods are also needed for sourcing and preserving raw materials. A significant amount of raw hides is wasted each year due to improper preservation and processing, which is a major loss for the industry. To minimize this loss, the number of modern cold storage and quick-processing units needs to be increased. To gain the trust of international buyers, it is also crucial for businesses in this industry to obtain certifications such as ISO 14001 (Environmental Management) and ISO 9001 (Quality Management).
Technology alone isn't enough to make the leather industry competitive; it also needs proper policy support. The government should create a long-term and stable policy for this sector. Providing special tax and duty exemptions, easier access to raw material imports, and simplifying export processes would encourage industry entrepreneurs.
The government also needs to focus on and take effective measures to improve the following areas:
● Research and Development (R&D): Increasing investment in R&D is crucial for the industry's development. A public-private partnership (PPP) model could be effective for research into new product innovation, improving product quality, and developing eco-friendly production processes.
● Skilled Workforce: There is no substitute for a skilled workforce to keep up with modern technology. This requires introducing specialized courses for the leather industry in technical education institutions, hiring skilled trainers, and establishing a close relationship between the industry and educational institutions.
● Branding and Market Expansion: The branding of Bangladeshi leather products is very weak in the international market. To promote them as high-quality goods, Bangladesh can regularly organize exhibitions, trade fairs, and roadshows abroad. At the same time, diplomatic and commercial efforts are needed to enter new markets, such as Latin America and Africa.
Achieving the dream of global success for the leather industry requires the combined efforts of the government, entrepreneurs, and workers. The primary goal should not be solely to increase exports, but to establish a sustainable industry by upholding environmental and social responsibility. Global buyers now look not only at a product's quality but also at its ethical and environmental standards.
If Bangladesh can overcome these challenges by modernising, becoming more eco-friendly, and providing the necessary policy support, the leather industry could quickly become a driving force for the country's economic growth, much like the RMG sector. This would not only increase foreign currency earnings but also create millions of jobs and strengthen the nation's economic foundation.
