BTA for transferring responsibility of Savar Tannery Estate to BEZA from BSCIC

Bangladesh Tanners Association (BTA) today
demanded of the government to transfer the responsibility of the development
of Savar Tannery Industrial Estate to Bangladesh Economic Zones Authority
(BEZA) from The Bangladesh Small and Cottage Industries Corporation (BSCIC)
to ensure a sustainable development of the sector.

BTA chairman Shaheen Ahmed said that even after investing more than Taka
10,000 crore in the tannery estate, entrepreneurs were passing a tough time
as the corporation failed to make the central effluent treatment plant
functional in 10 years.

The BTA chairman said this while addressing a seminar on ‘Actions for
sustainable development of leather industry’ held at the auditorium of
Economic Reporters’ Forum in the city.

He said that the relocation of tannery from Hazaribagh to Saver is yet to
bring any fruitful result rather the sector was missing its potential in the
global market due to the non-functional CETP and lack of solid waste
management.

The ERF, BTA and the Asia Foundation jointly organized the seminar.

Shaheen said that global brands stopped sourcing leather and leather goods
from Bangladesh leather following the relocation of tanneries due to the lack
of environmental compliance.

Without obtaining certification from Leather Working Group, Bangladesh would
not be able to do business with global brands and buyers, he said.

“To get the certification, a good number of tanneries will have to set up an
Effluent Treatment Plant on their own and the government will have to provide
policy and financial support to the investors,” Shaheen said.

He said that the government approved two companies to setup ETPs, but more
companies should get approval to setup ETPs to obtain LWG certification.

BTA chairman in a presentation said that the government has set a $12.5
billion export earnings target from the leather sector by 2030 and to achieve
the target, rectification and up-gradation of CETP and solid waste management
are important.

Shaheen said that the prices of raw hides have been decreasing in the local
market due to the less demand of Bangladeshi leather in the global market.

Citing statistics, BTA chairman showed that Bangladesh’s leather and leather
goods exports remained static for the past five years.

He said that the country’s leather and leather goods exports in the FY17 were
$1.23 billion and in FY2022, the exports were $1.24 billion.

BTA estimated that more or less 85 lakh animals including 45 lakh cows would
be sacrificed in the country this year.

Abul Kalam Azad, president of Tannery Workers Union, said that the tannery
sector failed to make its required progress after its relocation from
Hazaribagh to Savar due to the inefficiency of the concerned authorities.

He said that the problems related to the accommodation and medical facilities
of tannery sector workers remained unaddressed.

Ferdaus Ara Begum, Chief Executive Officer of Business Initiative Leading
Development (BUILD), said that the $12.5 billion export earnings target from
the leather sector by 2030 was achievable as the country has enough raw
materials.

She said that the government would have to provide policy support to ensure
an environment for foreign direct investment to attain the export earnings
target.

Tariqul Islam Khan, managing director of Marsons Tannery ltd, demanded policy
support for the leather sector, same as the readymade garment sector.

Asia Foundation country representative Kazi Faisal Bin Seraj, ERF president
Mohammad Refayet Ullah Mirdha and ERF general secretary Abul Kashem, among
others, spoke at the event. (BSS)