Alok Acharja

Among the main industries of the country, the leather industry is the most promising industry after ready-made garments. The main reason for this is that leather, the main material of this industry, is available in large quantities in our country.

To increase the export income of the country, it is necessary to integrate the production, storage, and marketing systems of the export products. Because the sustainable economy of the country depends on export income, The Russia-Ukraine war has well illustrated the pressure that import dependence puts on the country's economy.

Among Bangladesh's export products, the ready-made garment industry is the first. The second-top export product is leather. The value addition of the leather sector is 100%. Despite having many potentials, we are unable to exploit them. Although the government has been saying for several years that it is possible to earn 5 billion dollars from this sector, the export earnings are hovering around 1 billion dollars. Most of the export earnings come from leather shoes.

According to the data, in the financial year 2021–22, about 124 million and 52 million dollars of leather and leather products were exported. Out of this, only leather has been exported worth about 15 million to 14 million dollars. The government has set a target for the export of leather and leather products worth 144 million dollars in the current financial year. The leather and leather industries are in demand all over the world. Leather shoes, bags, and other items are very attractive to global buyers. Large companies have been developed based on the leather industry.

In our country, more leathers are collected during Eid al-Adha than the whole year. Competition in the leather industry is also noticeable around the world. Leather and leather products have a great role and potential in the economy of Bangladesh. Leather also has a reputation as an export product. Creating and maintaining a market for an export product is challenging. That challenge has to be met by continuous development of the sector and maintaining quality consistency.

Because every sector, like the jute, tea, or garment industry, involves employment and economic issues for many people, the leather industry also involves many people from the marginal stage of leather collection. According to the information published in the media, the income from leather and leather products is about 21.58 percent less than the target set by the government. The government had set a target of $1.22 billion for the July–April period, against which revenue was $96.15 billion. Export income from leather shoes decreased by 25.92 percent to 47.72 billion dollars.

Revenue from processed leather rose 9.71 percent to $12.57 billion. At the same time in the previous year, it was 11.45 billion dollars. Exports of leather products have decreased very slightly. Compared to the same period last year, the income decreased by 0.81 percent to 35.85 million dollars. Every year, before and after Eid al-Adha, there is a lot of discussion about the price of leather. It is seen that marginal traders do not get a fair price.

The leather industry, like other industries, should be seen as a priority industry and ensure fair value from the marginal stage. Along with tanned leather from Bangladesh, now shoes, travel bags, belts, wallets, or wallets are exported abroad.

It is possible to advance the country economically by making more use of this potential sector. However, according to the media, the problem that is currently hindering the leather industry is the LWG certificate. Because the LWG certificate is necessary to sell leather and leather products at a good price to the big brands of the world, including the European Union, Only two organizations in Bangladesh have that certificate. In 2005, several international brands and shoe manufacturers like Nike, Adidas, and Timberland formed the Leather Working Group, or LWG.

The organization aims to ensure the production of leather and leather products while ensuring environmental protection. This certificate helps in getting better prices for leather goods. It also plays a role in environmental protection. Also, due to global inflation and the situation being somewhat unfavorable, the development of this industry is a little hindered in the middle, but that environment is gradually being overcome. There is also a huge demand of our leather products abroad. According to the obtained data, the export of leather and leather products from Bangladesh in the financial year 2016–17 was more than 123 million dollars.

In the financial year 2017–18, it came down to 108 million dollars. 102 crores in the 2018–2019 financial year, and in the 2019–20 financial year, it came down to 800 million dollars. The export of leather and leather goods increased to 941.6 million dollars in the financial year 2020–21. In the financial year 2021–22, there will be more progress in this sector.

In the fiscal year 2022–23, Bangladesh earned $1,223.62 million from the export of leather and leather products. The government has reportedly set a target of $12–13 billion in leather and leather goods exports by 2030. In a seminar this year, European Union (EU) ambassador to Bangladesh Charles Whiteley said, '1 million people have been employed in this sector.

However, the sector's contribution to the economy is still relatively low, as 3.80 percent of the country's exports come from the leather industry, and the sector's contribution to GDP is about 0.6 percent. He said that Bangladesh's share in the global market for leather and leather products is about 3 percent. The sector has the potential to grow, and that growth must sustainably take place.

Leather has a promising future. Before the holy Eid-ul-Azha, this market becomes more active. Spread to the marginal stage of the country. The leather sector is in crisis, along with all other sectors, during the coronavirus epidemic. Almost crores of cows are slaughtered as official sacrifices. During this time, millions of seasonal traders stay to buy leather. Through their hands, the leather reaches the hands of the leather traders.

These seasonal traders in the leather trade have also started losing enthusiasm. In our country, jute, tea, and ready-made garments play an important role in consolidating the country's economy and advancing it. If our neighboring countries can, then we can also establish ourselves in the international leather market, as we have strengthened our position in the garment industry. If this industry is carried forward, the country's economy will also be accelerated. In addition to ensuring a fair price for leather, attention must be paid to existing problems.

The writer is a Essayist and columnist Pabna.