DHAKA, May 31, 2022 (BSS) - Speakers at a webinar today stressed the need for
working in an integrated manner by all the stakeholders, including the
Ministry of Industries, Ministry of Environment, Forests and Climate Change
and the Ministry of Labour and Employment to order to ensure compliance in
the leather sector.
They also proposed to form a Leather Sector Development Authority to ensure
the development and smooth supervision of this sector as it is possible to
earn around $10 billion to $12 billion from this sector by 2030.
Citing lack of compliance as the major problem of this sector, the speakers
also noted that the exporters are getting the lesser price of their products
due to noncompliance and the just price of leather products is also not being
ensured in the local market.
They made the observations at a webinar titled "An Assessment of the Impact
of COVID-19 on Tanneries" organised jointly by the Asia Foundation (TAF),
Research and Policy Integration for Development (RAPID) and Economic
Reporters' Forum (ERF) held through Zoom Platform.
Zakia Sultana, secretary of the Ministry of Industries, attended the event as
the chief guest.
Additional Secretary of the Ministry of Industries Kazi Sakhawat Hossain
spoke at the event as a special guest.
Managing Director of Apex Footwear Ltd Syed Nasim Manzur, Vice-Chairman of
Bangladesh Tanners Association (BTA) Mizanur Rahman, and Executive Director
of Bangladesh Labour Foundation AKM Ashraf Uddin attended the webinar as
discussants.
Country Representative of the Asia Foundation Kazi Faisal Bin Seraj delivered
the welcome remarks while the executive director of RAPID Dr Abu Eusuf
presented the keynote paper.
ERF President Sharmeen Rinvy chaired the event while ERF General Secretary SM
Rashidul Islam moderated it.
Terming the leather sector as a very potential one, Industries Secretary
Zakia Sultana said that the country could earn around $10 billion to $12
billion per year from this leather and leather goods sector if it is nurtured
and monitored properly.
"But, there are many challenges in this sector of which the major one is
solid waste management. Companies from the EU, Italy, and India are coming to
us, but we're not getting suitable offers from them," she said.
Turning to the issue of CETP at Savar, the Industries Secretary mentioned
that the previous ETP and the current ETP are not the same. The compliance of
the ETP is now in good condition compared to the past and it would become
much better in the future, she added.
Zakia also informed her Ministry's plan to set up another CETP in Rajshahi.
Noting that the Industries Ministry is in conversation with the RAJUK for
bringing Hazaribagh out from the 'red zone' tag, the Industries Secretary
said that there is a scope for producing byproducts in Hazaribagh which will
lead to the creation of employment opportunities and export earnings. "But,
there is a need for some policy changes in this regard."
Managing Director of Apex Footwear Syed Nasim Manzur said that the global
supply chain of leather goods has almost collapsed due to the COVID-19
pandemic and the ongoing Russia-Ukraine war.
He said although there was a scope for increasing the share in the global
market under the present circumstances, it is not being possible due to
noncompliance in this sector despite having its own raw materials.
Urging the government to withdraw the tag 'red zone' from Hazaribagh, he said
that the Ministry of Industries alone could not move forward in the leather
sector, as an integrated effort is needed in the participation of the
Ministry of Labour and Employment and the Ministry of Environment, Forests
and Climate Change.
While presenting the keynote paper based on a survey, Dhaka University Prof
Dr M Abu Eusuf said that the macroeconomic indicators of Bangladesh are
positive despite various challenges.
He said due to non-compliance in the leather sector, Bangladesh is getting
around 30 to 40 per cent less price of products.
"The problems in the leather sector have already been identified while strong
initiatives are needed for addressing those problems, including solid waste
management," he added.
The RAPID executive director said since the value addition in the leather
sector is very high, so the entrepreneurs in this sector want more policy
support than financial support.
Dr Eusuf proposed to form a Leather Development Authority under the PMO for
ensuring the management and development of this sector.
Industries Ministry additional secretary Kazi Sakhawat Hossain said that the
government has been implementing various schemes for ensuring the development
of this leather sector.