Amid global hostilities, leather products surpass export projection

As the exports of leather and leather goods have surpassed their projections, manufacturers are not that happy with the prices they have been offered.

The glorious earning was possible as the demand for such products sprang up in the United States of America, exporters said.

Exports of leather and leather goods have fetched a record of $1.25 billion in the just expired fiscal year as against a target of $1.03 billion, according to Export Promotion Bureau (EPB).

Though the demand for leather products is increasing in the United States of America, traders are worried that a prolonged war could slow shipments, insiders said.

“With the Covid-19 pandemic lockdown getting relaxed, global demand for consumer products are increasing. However, in spite of having positive growth, we fear the Russia-Ukraine war may impact our exports to the EU market severely,” Syed Nasim Manzur Managing Director, Apex Footwear Ltd, told the Business Insider Bangladesh.

In addition, a good number of orders are making their way to Bangladesh from China and Vietnam because those countries are suffering from covid-19 and China has developed a rift with the USA.

The buyers also feel comfortable placing orders to Dhaka---their old business partner--- for product sourcing. If the war is not through, leather exports in the next year may get uncertain, exporters said.

“The increasing spending on personal goods due to growing fashion-consciousness is one of the major reasons for the growth of this market. However, we are struggling for a fair price. The exporters are yet to pay back their bank loans taken during the pandemic,” said Md Belal Hossain, proprietor of Abir Leather Ltd.

the leather export grew by 27 percent and fetched $151 million, leather goods 34 percent to $338 million and footwear 33 percent to $756 million from the global market in 2022FY.

The export last year aggregated $942 million. Of these, leather fetched $130.5 million, leather goods $280 million and footwear $620 million, respectively.

In FY2018-2019, leather and leather goods including footwear shipment stood at $607.88 million, in 2019-20FY $797 million and in 200-21 $942 million, respectively, according to EPB.

However, the commerce ministry is contemplating a ten-year perspective plan which will take leather product export to $10-$12 billion by 2030.

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