Leather, leather goods exports near target

Exports of leather and leather goods have been surpassing the set target since July of this fiscal 2021-22, as the world markets resumed.

However, in the nine months of the current fiscal year leather and leather goods shipment achieved 87 percent of the target and fetched $897 million against the projection of $1,031 million, according to Export Promotion Bureau (EPB).

Leather fetched $116 million, leather products $242 million and footwear $539 million, respectively, from the global market during the July-March period.    

The exports during the corresponding period of the last fiscal were worth $684.84 million.

The exports used to fetch worth $1.2bn in the pre-Covid period. The trade is bouncing back, exporters said.

Though the global demand for leather products is increasing in the United States market, the businesses are worried over the future shipment because of the Ukraine war. A prolonged war may affect Bangladesh’s leather and leather goods exports, Insiders said.

“Since the relaxation of lockdown globally, demand for leather products is increasing. But, in spite of having positive growth, we are struggling to get back the full momentum of trade. The EU importers are afraid of the Russia-Ukraine war,” Syed Nasim Manzur, managing director of Apex Footwear Ltd, told the Business Insider Bangladesh.

However, there is good news for Bangladesh, too. A good number of orders are being diverted to Bangladesh from China and Vietnam because of Sino-US relations and lockdown impact in Hanoi. Meanwhile, the exporters who ship products to Japan are happy as their shipment rose.

“The export has increased by 58 percent but the price has been meagre. And, the sector is suffering from the pandemic effect.  Exporters are selling the products at cheaper rates because they are feeling the pinch of the bank loans. We will be able to export at an expected level whenever the Covid-19 pandemic gets normal,” Md, Belal Hossain, proprietor of Abir Leather Ltd told Business Insider Bangladesh.

In the fiscal year of 2017-18, export earnings from processed leather dropped by 21 percent, from $232.6 million to $183 million. However, exports earning from the leather footwear posted a 7.48 percent growth to $607.88 million in FY 2018-2019, according to Export Promotion Bureau (EPB).

Bangladesh has to enhance the export to achieve the vision for entering on top 10 leather exporting countries index by 2025, exporters said.

The most promising markets for Bangladeshi leather, leather goods, and footwear products are: Germany, Italy, France, Netherlands, Spain, Russia, Brazil, Japan, China, UK, Singapore, Poland, the US, Canada, and Taiwan, etc.