The leather industry is a major industry in
Bangladesh
Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...
and the
Government of Bangladesh
The Government of the People's Republic of Bangladesh ( bn, গণপ্রজাতন্ত্রী বাংলাদেশ সরকার — ) is the central executive government of Bangladesh. The government was constituted by the Con ...
has declared it as a priority sector. The industry was the second largest export sector of Bangladesh in FY 2014–2015. The industry also plays a role in creating employment.
However,
Human Right Watch
Human Rights Watch (HRW) is an international non-governmental organization, headquartered in New York City, that conducts research and advocacy on human rights. The group pressures governments, policy makers, companies, and individual human ri ...
reported that it is responsible for pollution of air, water, and soil, that lead to serious health problems in the population.
It is also known to be largely involved in
child labour
Child labour refers to the exploitation of children through any form of work that deprives children of their childhood, interferes with their ability to attend regular school, and is mentally, physically, socially and morally harmful. Such e ...
.
Set up of tannery industry in Bangladesh
The first tannery in what is now Bangladesh was set up at
Narayanganj
Narayanganj ( bn, নারায়ণগঞ্জ ''Naraeongônj'') is a city in central Bangladesh. It is in the Narayanganj District, about southeast of the capital city of Dhaka, and has a population of about 2 million. It is the 6th larges ...
sometime in the 1940s by a businessman R.P. Shaha. The tannery was later shifted to
Hazaribagh area in
Dhaka
Dhaka ( or ; bn, ঢাকা, Ḍhākā, ), formerly known as Dacca, is the capital and largest city of Bangladesh, as well as the world's largest Bengali-speaking city. It is the eighth largest and sixth most densely populated city ...
. In 1965, there were 30 tanneries in Dhaka. After the independence of Bangladesh, Bangladesh Government acquired all 30 tanneries. The industry had a significant development in 1970s.
Situation
Increasing interest from buyers has opened up an opportunity for footwear and leather industries of Bangladesh. The
production
Production may refer to:
Economics and business
* Production (economics)
* Production, the act of manufacturing goods
* Production, in the outline of industrial organization, the act of making products (goods and services)
* Production as a stati ...
of leather-made items has been increasing in the country. The sector has the potential for becoming the second largest foreign currency earner after ready-made garments. Industry analysts believe that Bangladesh's over one billion footwear industry has the potential to grow to a 15-billion dollar vibrant industry within a decade.
According to
EPB
EPB of Chattanooga, formerly known as the Electric Power Board of Chattanooga, is an American electric power distribution and telecommunications company owned by the city of Chattanooga, Tennessee. EPB serves nearly 180,000 homes and businesses ...
data, the leather industry has crossed the record $1-billion mark in 2012–13.
Bangladesh
Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...
earned $1.29 billion from exports of leather, leather goods and footwear in 2013–14 fiscal. The export target for 2014–15 has been set with an increase by 4.2 per cent. This rate of growth needs to be progressively accelerated to attain the target of $5 billion in 2020.
Exports of leather and leather goods crossed $1 billion for the second year in fiscal 2014–15, according to data from the
Export Promotion Bureau
Export Promotion Bureau (EPB) is a Bangladesh government agency located within the Ministry of Commerce. It is responsible for developing the nation's export industry. It does not include import data
Establishment
It traces its origin to the Ex ...
.
Education
The Institute of Leather Engineering & Technology is an educational institution at Hazaribagh,
Dhaka
Dhaka ( or ; bn, ঢাকা, Ḍhākā, ), formerly known as Dacca, is the capital and largest city of Bangladesh, as well as the world's largest Bengali-speaking city. It is the eighth largest and sixth most densely populated city ...
,
Bangladesh
Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...
that provides education related to making leather, leather products and footwear. The institute offers graduate courses through the
University of Dhaka
The University of Dhaka (also known as Dhaka University, or DU) is a public research university located in Dhaka, Bangladesh. It is the oldest university in Bangladesh. The university opened its doors to students on July 1st 1921. Currently i ...
. It is an institute of
University of Dhaka
The University of Dhaka (also known as Dhaka University, or DU) is a public research university located in Dhaka, Bangladesh. It is the oldest university in Bangladesh. The university opened its doors to students on July 1st 1921. Currently i ...
where admission is given through the admission test of A unit. It was the only educational institution of its kind in the country before
Khulna University of Engineering & Technology introduced Leather Engineering Department for honours.
Khulna University of Engineering & Technology is the another university which offers degree in Leather Engineering. The department of Leather Engineering started its journey form 2010 and till now 4 batches successfully completed their graduation.
Opportunities and challenges
Leather is a unique
commodity
In economics, a commodity is an economic good, usually a resource, that has full or substantial fungibility: that is, the market treats instances of the good as equivalent or nearly so with no regard to who produced them.
The price of a comm ...
that links grassroots villages with high societies and traditional practices with emerging
technologies. For many developing countries, leather and leather manufacturers constitute an indispensable and dependable source for export trade and foreign exchange earnings. For Bangladesh, leather is a high priority industrial sector and footwear exports, an extreme focus area. Bangladesh has, just few decades since Independence, made significant gains from the leather trade, progressing from the status of an exporter of 90% plus raw hides and skins to that of an exporter and predominantly leather product manufacturer. However, there is little systematic research into this sector. This study is trying to address the research gap by seeking to understand the current status, problems and prospect of leather industry in Bangladesh.
It is notable that China, the world's largest footwear manufacturer, is now withdrawing from the global leather goods
market
Market is a term used to describe concepts such as:
* Market (economics), system in which parties engage in transactions according to supply and demand
* Market economy
*Marketplace, a physical marketplace or public market
Geography
*Märket, a ...
. And
Bangladesh
Bangladesh (}, ), officially the People's Republic of Bangladesh, is a country in South Asia. It is the eighth-most populous country in the world, with a population exceeding 165 million people in an area of . Bangladesh is among the mos ...
is ready with huge potentials to attract
foreign investments
A foreign direct investment (FDI) is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct co ...
in the sector. According to a report, China's annual leather footwear production had dropped by 5.29 per cent in 2012 and 7.45 per cent in 2013. While asked about the reasons for China's focus shift, Bangladesh Footwear and Footwear Accessories Association (BFFAA) said labour cost in China has gone up. In consequence the Bangladeshi manufacturers are seeing brighter prospects for the leather sector after the
readymade garment industry because of a policy shift in
China
China, officially the People's Republic of China (PRC), is a country in East Asia. It is the world's most populous country, with a population exceeding 1.4 billion, slightly ahead of India. China spans the equivalent of five time zones and ...
, the world's largest economy.
Country's leather industry is facing a number of problems. The tanneries of Hazaribagh area in the capital have not been fully shifted to Savar where favourable conditions have been created as per the criteria set by most buyers. Technical know-how of the workers needs to be developed to cope up with new challenges in this industry.
Leather goods manufacturers and suppliers
* Helena Enterprise Ltd
* Bata Shoe Co. (Bangladesh) Ltd
* All Right Leather Corporation
* Dysin Chem. Ltd
* Jamuna Group
* Shafiq Leather Corporation Ltd
* Global Star Ltd
* Charma Shilpa (Pvt.) Ltd
* Life Style & Co etc.
* Fortune Shoes Ltd.
Sources
* Maksud, A K M; Hossain, K.R.; Sayed, S. and Arulanantham, A. (2021) Mapping of Children Engaged in the Worst Forms of Child Labour in the Supply Chain of the Leather Industry in Bangladesh, CLARISSA Emerging Evidence Report 5, Brighton: Institute of Development Studies, DOI: 10.19088/CLARISSA.2021.005
References
{{reflist
Maksud, A K M; Hossain, K.R.; Sayed, S. and
Arulanantham, A. (2021) Mapping of Children Engaged in
the Worst Forms of Child Labour in the Supply Chain of
the Leather Industry in Bangladesh, CLARISSA Emerging
Evidence Report 5, Brighton: Institute of Development
Studies, DOI: 10.19088/CLARISSA.2021.005 (https://opendocs.ids.ac.uk/opendocs/bitstream/handle/20.500.12413/16743/CLARISSA%20EER5%20FINAL%208VII21%20online.pdf?sequence=1&isAllowed=y visited on 27 August 2021)
External links
Report examines grim Bangladesh leather tradeLeather and Leather goods 17 Facts You Should Know About Bangladesh Leather IndustryBangladesh tanneries harm workers poison communities
Leather industry
Industry in Bangladesh