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Asian Tribune is published by E-LANKA MEDIA(PVT)Ltd. Vol. 20 No. 114

Bangladesh leather export to increase 3 folds

Dhaka, 29 May (INS + The country’s export of finished leather and leather products will be doubled in the next three years through increasing an average of 15 per cent entrepreneur’s profitability like India and Malaysia.

A two-pronged approach is planned to achieve the target - first part is sustainable access to superior quality hides, while the second part is putting in more Bangladeshi entrepreneurs in charge of their future leadership by developing leather market.

This was revealed in a draft strategy on ‘Sector Development for the Leather Sector in Bangladesh jointly prepared by the Commerce Ministry and the Leather Sector Business Promotion Council.

The strategy paper said, of the total leather sector production, about 80 per cent (200 million sq ft) are semi-finished crust while 50 per cent come under grade-A and grade-B.

Export Promotion Bureau sources said, Bangladesh exported finished leather and leather goods worth US $ 220 million in 2004- 05, while it was US$ 207 million in 2001- 02.

The paper pointed out that the two main barriers are affecting the supply of crust and finished leather goods to the international market, despite receiving huge export orders from buyers.

Unofficial importing of live cows and buffaloes from across the border in India adds 10 per cent to total supplies. Even these additional hides are not adequate to meet the demand.

The strategy paper recommended a number of steps to alleviate the current shortage of hides are: reducing the damage and loss of hides while slaughtering, uses of all grade of leathers in manufacturing products and improvement in productivity.

Eliminating insufficiencies in the procurement of hide could potentially cut the cost of the inputs by at least 10 per cent as inputs make up more than 60 per cent of the cost of finished leather and leather goods.

It said tanneries should produce good quality products in sufficient volume and overcome their supply constrains.

- INS + Asian Tribune -

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