Leather and leather products export has increased by 7.19 per cent much to the satisfaction of the government.The government set the export target of $693.85 million for the first seven months (July to January) but the sector earned $743.77 million, according to the latest data of Export Promotion Bureau (EPB). Out of the total export earnings, the footwear products received the highest $278.68 million.Bangladesh received $ 1160.95 million export earnings from leather sector in the last fiscal 2015-16. The government has set the export target of $1220 million from the leather sector in the current fiscal 2016-17. Recently, the commerce minister Tofail Ahmed has said the leather sector will earn $5 billion by 2021.”Actually, an opportunity has opened up for Bangladesh’s leather especially the footwear industry to capture global market riding on China’s higher labour cost, say industry insiders.The footwear industry, which manufactures leather and synthetic shoes and sports footwear, has great prospects for more exports because of availability of quality raw materials and cheap labour, they said.Currently, footwear is being exported to Japan, Italy, UK, USA, France, Belgium, Sweden, Spain, Saudi Arabia, Taiwan, Hong Kong, Canada, and Korea.Although the country’s export basket is heavily dependent on readymade garments or RMG products several new sectors have cropped up over the last decade. Footwear is one such sector that has tremendous potential to give a boost and diversify the export basket as well. Syed Nasim Manzur, president of Leather Goods and Footwear Manufacturers and Exporters Association (LGFMEA), said, “We want to export leather goods instead of raw leather, because it will create employment, a major factor for economic growth”.The LGFMEA chief also said at present China was not doing better in footwear manufacturing and that was one of the main reasons for the fall in the country’s leather exports in recent times. China is one of the main buyers of Bangladeshi leather.The rising labour costs in China have made big retailers look to countries like Vietnam, the Philippines, Bangladesh and India. Leather sector businessmen say Bangladesh is an attractive destination for leather sector entrepreneurs as China is facing problems in the sector.Bangladesh’s footwear exports doubled during 2010-13 and continue to rise further. The country is engaged in exports of components at various stages of footwear such as soles and finished goods like shoes, said the business leader.Recently, total export has exceeded the $1 billion mark in the leather sector due to rising global demand and renewed interest amongst the local entrepreneurs for manufacturing footwear, he informed.Already, some international investors have shown their interest to set up factories in local Export processing Zones (EPZs) to consider the leather sector of Bangladesh.Mustafizur Rahman, Distinguished fellow of the Centre for Policy Dialogue (CPD), said, “There is a major opportunity in the leather and footwear industry. If this opportunity is seized, the sector will become the second major export earner after RMG”.For the RMG sector, thread and other accessories have to be imported, but raw hide is available for this sector, he pointed out.”If we can adopt the right policy, we will be able to increase exports further and create a major opportunity for the country”, he added.Mustafozir Rahman underscored the need for developing the brand and exploring markets for the products.
