Tanners relocated to Savar under false assurances: Businesses to Salehuddin

Tanners from Dhaka's Hazaribagh were relocated to the Tannery Industrial Estate in Savar under false assurances, and the leaders of Bangladesh Finished Leather, Leather Goods and Footwear Exporters' Association have raised concerns about the absence of necessary infrastructure with Commerce and Finance Adviser Salehuddin Ahmed.

The leaders further stated that leather entrepreneurs were relocated without any infrastructure improvements. Due to the absence of a Central Effluent Treatment Plant (CETP) in the industrial park, leather products are being exported at 70-80% lower prices than those in the international market.

Mohiuddin Ahmed Mahin, chairman of the association, and its Chief Adviser MA Rashid Bhuiyan made these remarks while speaking to journalists after their meeting with Salehuddin at the ministry today.

Following the meeting, Salehuddin Ahmed emphasised the significance of the leather sector, noting its substantial demand both domestically and in exports.

He said, "The leather sector presents significant opportunities for export diversification. However, it also faces various challenges. The relocation of tanners to Savar, environmental concerns, financing, and leather certification for exports were all topics of discussion."

"Ultimately," he added, "we aim to establish the leather industry and its products as a major export sector." 

Speaking to journalists, MA Rashid Bhuiyan said, "Since relocating to Savar, we have been unable to conduct business effectively. The CETP is still not in place. We were previously misled, as we were taken there without any infrastructure being established. We have now communicated these issues to the finance adviser. The current government has assured us that this matter will be addressed."

In response to questions from journalists about their demands, this business leader said, "Our primary demand is to establish the CETP, as its absence is causing us significant difficulties. For this reason, we have requested a rescheduling of our debts with interest waived."

Mohiuddin Ahmed Mahin stated, "Because the CETP is incomplete, we are forced to sell our products in China at 70-80% lower prices than the current international market rate. If we can enhance the value addition, we could return to the prices we were able to achieve in 2015-2016, when leather was priced at Tk2,000.

"The participation of tannery owners in the Bangladesh Small and Cottage Industries Corporation (BSCIC) industrial estate was adequate. The failures we have experienced are due to the shortcomings of the government institution BSCIC. Therefore, the responsibility for this failure does not lie with the tannery owners. The finance adviser has listened to our concerns and has promised to address the issues."