Export earnings from the country’s thriving leather and leather goods sector exceeded the target by 9.64 percent in the first half of the current fiscal, showing a sign of steady growth and long-term growth potentials.Leather and leather goods fetched $628 million from exports against the target of $572 million in the first half (July-Dec) of the current FY 2016-17. The government has set the target of export earnings from this sector at $1.22 billion in FY 17.The sector’s export earnings in the six months grew by 11.93 percent compared to the same period last fiscal. The country earned $560 million from leather and leather products exports in the same period of FY 2015-16, according to Export Promotion Bureau (EPB) data.“We are trying to make a larger contribution to the country’s exports. In the first half of the current fiscal, we have exceeded the export target set by the government,” Bangladesh Finished Leather, Leathergoods & Footwear Exporters’ Association (BFLLFEA) President Mohiuddin Mahmud Mahin told daily sun.Terming the sector as a thriving one, the BFLLFEA President said the sector is steadily growing up and in order to tap the full potential, there is no alternative to making concerted efforts by both the public and private sector.Exporters Association of Bangladesh (EAB) President Abdus Salam Murshedy said it is a good news for the country that the leather sector is marching forward to the right direction by fulfilling the export targets against all odds.During the July-Dec period, the country fetched $135 million against the target of $131 million from leather exports, $209 million against the target of $211 million from exports of leather products and $283 million against the target of $230 million from leather footwear exports, according to EPB data.Market insiders said exports will increase manifolds if the leather and leather goods sector meets the compliance standards and takes initiatives to promote their products in the international market.It has been learnt that potentials buyers still hesitate to source products from Bangladesh’s leather sector due to poor compliance standards in the tannery and leather factories. Lack of compliance has also been blamed for the deteriorating market reputation in the European market.“Smooth relocation of tanneries can bring a new dimension to the leather sector and I believe that the leather sector will bring huge export earnings in future and become the second largest export driver next to the RMG,” EAB President Abdus Salam Murshedy said.The buyers from across the world, especially Europe have been requesting the Bangladeshi counterparts to maintain full compliance for long as the tanners are polluting the river and air of the capital. The government has been making hectic efforts to ensure full compliance in the leather sector by relocating tanneries in the planned leather industrial estate in Savar for the last 13 years.“There is no doubt that export volume and the number of orders will definitely increase after the relocation of tanneries from hazardous Hazaribagh to Savar,” admitted BFLLFEA chairman Mohiuddin Mahin.Bangladesh exported leather and leather goods worth $1.13 billion and $1.16 billion respectively in FY 2014-15 and FY 2015-16.Currently, 220 tanneries, 2500 footwear manufacturing units and 90 large firms are involved in the leather and leather goods sector. This sector is contributing four percent to the country’s total export earnings by exporting items to more than 50 countries.
