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Leather crisis from India to Bangladesh
Indian and Bangladeshi companies need greater oversight of their production processes and certification of their operations. Without this, the leather sectors of both countries risk being left without investment and unable to export directly to Europe and the US, writes Laconceria.it.
Most of the 140 tanneries operating in the Savar district of Bangladesh cannot export their products directly because they lack certification. Only eight companies have certification.
As a result, tanneries in Bangladesh are forced to sell raw hides to China, where they are processed and re-exported to Europe and the US, weakening Bangladesh's position in global value chains.
According to The Business Standard, the issue was discussed at a meeting organised by the Bangladesh Tanners Association (BTA) and the Business Development Council (BPC).
Most local tanneries fall far short of international standards, leading Bangladesh to continue losing market share in the leather sector. Furthermore, the Central Wastewater Treatment Plant (CETP) in Savar is reportedly only partially operational, hindering new investment in the sector.
The country's second-most populous city, Chittagong, is at risk of disappearing from the global leather industry map.
India is also experiencing a crisis in the leather industry. Following a fire at a tannery in Kolkata on May 12, which killed two people, inspections of businesses to ensure compliance with fire safety regulations have begun. An illegal structure in Tiljala, which housed a family-owned tannery, has already been demolished. Many small businesses, fearing inspections, remain closed.
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