Exports of leather, leather-products shine amid economic downturn

As apparel exporters are having long faces over abrupt fall in shipment, leather and leather goods traders are doing well amid an adverse economic situation.

According to the Export Promotion Bureau (EPB), leather and leather goods export increased by 20.87 percent during the first quarter of ‘23 FY.

In that quarter, exports of leather goods recorded $327.98 million as against $271.34 million during the corresponding period of the earlier fiscal year, according to EPB data.

“As our prime markets are China and Japan, those places have been affected less than the EU market because of the Russia-Ukraine war. That is why shipment of leather and leather goods has grown even in hostile situations,” Belal Hossain, former president of Leather Goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) , told the Business Insider Bangladesh.

He said: “This potential sector needs the policy support of the government. If the sector gets some subsidies, it may grow like apparel trade.”

However, in the last couple of years, 40 percent of the companies out of 155 have stopped exporting to the Western markets due to complaint issues, according to LFMEAB.

“We are not able to ensure a water treatment plant for all the ternaries. If the government takes steps to provide financial support, the sector will boost the economy.”

Export of leather was aggregated $34.52 million in July-September while leather products fetched $82.50 million and leather footwear $210.96 million, respectively.

Bangladesh has to enhance its export to get into the list of the top 10 leather exporting countries index by 2025.

In the fiscal year 2017-18, export earnings from processed leather dropped by 21 percent, or 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 EPB.

Meanwhile, leather and leather goods trade fetched $1,245.18 million in 2021-’22 FY which was $941.67 million in the previous FY.

Industry insiders think, if the export growth keeps on maintaining such a pace, shipment could reach $1,500 million by the end of this fiscal year.

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.