Proper management of tannery solid waste can benefit the SME sector

SMEs could offer services such as the collection and transportation of waste from tanneries to treatment and recovery facilities. Photo: TBS

The Dhaka Tannery Estate, with its roots dating back to the 1940s in Narayanganj, shifted to Hazaribagh in 1960 and finally settled in Savar in 2017. Hailed as a vital step for Bangladesh's leather industry, the relocation aimed to improve environmental standards and secure a competitive edge in global markets. 

Despite the promise of a modern Central Effluent Treatment Plant (CETP) by 2014, essential for compliance with international export standards, the industry's growth remains stagnant, raising questions about the effectiveness of regulatory measures. 

The leather industry, an important contributor to Bangladesh's economy, saw export values reach $1.23 billion in 2016-17, and hovered in that range in 2022-23 at $1.22 billion. Industry leaders cite the incomplete CETP as the main bottleneck as its operational challenges prevent factories from earning the Leather Working Group (LWG) certification which is critical for exports to the European Union. 

With only a few factories recently completing audits, the certification remains out of reach due to the CETP's partial functionality, curtailing the sector's potential growth.

At 200 acres, the Savar estate provides ample space compared to Hazaribagh's 62 acres, yet challenges persist. Of the 220 tanneries formerly operating in Hazaribagh, 154 have shifted to Savar, while 66 remain. 

This shift, however, left behind several small and medium enterprises (SMEs) that once thrived by repurposing tannery by-products. Due to strict policies restricting tannery solid waste management (TSWM) outside the estate, these SMEs now struggle with limited raw material access and financial constraints, leading to widespread closures and loss of jobs. 

Among the affected workforce were many women, particularly those involved in by-product production, who now face unemployment. Informal estimates indicate that 3,500 SMEs and around 110 large firms are involved in the industry, yet only about 2,000 SMEs have successfully relocated to Savar.

Today, the estate grapples with dual issues: the CETP's limited operational capacity and a lack of TSWM planning not only affects compliance but also undermines the industry's competitiveness. With the relocation, tanneries face additional challenges, including lost buyers, financial strains, and inadequate social infrastructure such as housing, schools, and medical facilities for workers, which compounds the burden on small by-product manufacturers.

According to several associations in Hazaribagh, approximately 50 recyclers once processed raw trimmings into various products, but this number has dwindled to fewer than 10. Employment in this sector dropped significantly, with factories that previously employed around 100-150 workers now shut down. The social and economic impacts are severe, disrupting livelihoods and creating substantial hardship for communities that depended on the industry. 

Research from the Asia Foundation highlights the presence of three types of actors in the former Hazaribagh ecosystem: job workers, tannery owners, and manufacturers for the local market producing shoes, bags, and belts. 

Tannery waste, including leather trimmings from legs and heads, is now exported directly to China, while finished leather goods are increasingly imported from India and China to meet domestic demand. This shift signifies a concerning dependence on foreign imports and the erosion of local manufacturing capabilities in an industry once teeming with local expertise and employment.

Tannery solid waste: An untapped resource

Bangladesh generates an estimated 73,588 to 90,795 tonnes of Tannery Solid Waste (TSW) annually (EEL&GB, 2023). This waste primarily consists of fleshing, raw trimmings, split leather, shavings and buffing dust, crust, and finished trimming. The hazardous nature of TSW, particularly its high chromium content, poses significant environmental and human health risks. These pollutants can contaminate soil, water, and air, causing lasting damage to ecosystems. 

However, recent discussions have suggested that much of the TSW may not contain chromium, with approximately 80% being non-chrome leather. This opens up the possibility of using some of the waste as raw material for small and medium-sized enterprises (SMEs), but there is currently no policy in place to manage this effectively. 

Although the government has enacted regulations for solid waste management, they do not specifically address tannery solid waste, and many tanneries continue to dispose of TSW illegally.

Research conducted by the Asia Foundation reveals that Tannery Solid Waste is categorised into 11 types, including tanned and untanned waste, as well as effluent treatment plant (ETP) sludge. 

The five most important categories of TSW include fleshing (46%), trimming before splitting, trimming before shaving, toggle trimming, and buffing dust, which are all directly disposed of at the tannery estate's dumping sites. 

Raw trimmings (17%) are repurposed for products like gelatin, glue, shoe soles, and more. Other waste, such as split leather (18%), is used in making safety equipment (e.g., socks, gloves, aprons) and accessories. Shaving dust (16%) is often repurposed for leather board production, used in cement factories, and setting trimmings. Crust and finished leather trimmings (3%) are utilised by local leather goods manufacturers. Of the total TSW, 54% is processed, with fleshing being disposed of directly, while the remaining 46% is treated.

The Tannery Estate in Savar is attempting to make use of a portion of its solid waste, specifically fleshing, by converting it into various by-products, including poultry feed and fish feed. 

If tannery waste can be managed and utilised more efficiently, SMEs could play a significant role in producing a range of products to meet both local and export demands. To do so, these SMEs must ensure compliance with environmental and safety standards. Local manufacturers are already in the process of producing products such as shoes, sandals, bags, belts, gum, glue, gelatin, particle boards, and poultry feed. 

Additionally, SMEs could offer services such as the collection and transportation of waste from tanneries to treatment and recovery facilities, further supporting the sustainable use of TSW.

Building capacity and sustainability in tannery solid waste management

Effective tannery solid waste (TSW) management requires the establishment of segregation and pre-processing facilities to enable further treatment and resource recovery. Tannery waste holds potential as an energy source, capable of supplying thermal energy to tanneries and other industries. 

Additionally, small and medium-sized enterprises (SMEs) could offer disposal services for TSW that cannot be processed or recovered, ensuring proper landfill management and compliance with environmental regulations. However, to take on this role, SMEs need to build their capacities in line with regulatory standards.

Currently, government guidelines on proper TSW management are limited, and enforcement of existing regulations is weak, aggravating the environmental impact. Waste is often dumped into rivers or drains, polluting water supplies and damaging aquatic ecosystems. 

Tannery emissions, which include volatile organic compounds, sulphur dioxide, and particulate matter can contribute to respiratory diseases, heart conditions, and cancer risks. 

Furthermore, soil contamination from tannery waste makes agricultural activity difficult, while the lack of transparency in waste disposal practices hinders effective monitoring.

Communities near tanneries are often unaware of the health risks associated with TSW, leading to unintentional exposure to hazardous waste. Raising public awareness about these dangers is crucial, as is implementing stringent TSW management policies to advance infrastructure and environmental standards across the industry.

The government should introduce policies mandating recycling, offer tax incentives for the use of recycled materials, and invest in recycling infrastructure. Financial incentives could encourage new SMEs to adopt eco-friendly practices and develop innovative recycling technologies. 

By-products of TSW should receive formal recognition within the Industrial Policy and SME Policy, with provisions for financing support. Policies should also regulate direct waste disposal to protect land and water from pollution. 

Compliance measures, such as improved housekeeping and technological solutions to limit water and salt usage, should be enforced. All small entrepreneurs should receive support under a unified framework to ensure compliance and minimise environmental risks.

To manage existing TSW within the Tannery Industrial Estate in Dhaka (TIED), repairs to the sedimentation tank are urgently needed to prevent environmental degradation. Relocating and managing the existing TSW within TIED is essential to prevent significant environmental damage. 

Additionally, a modern, scientifically managed TSW Dumping Yard (TDY) should be established with strict guidelines on waste disposal within the facility.

Establishing mechanised slaughterhouses at the upazila level could improve leather quality by minimising damage, enabling better waste utilisation for by-products. Sustainable TSW solutions and traceability are essential for achieving Leather Working Group (LWG) certification.

A comprehensive study to assess the current ecosystem of SMEs engaged in TSW processing and by-product development should be launched, with research institutions and educational entities collaborating with SMEs. 

Continuous research, pilot projects, and feasibility studies will be crucial to supporting SMEs in sectors such as gelatin production, textile and paint manufacturing, shoe sole production, cement, mosquito coils, split leather products, safety items (e.g., gloves), poultry feed, rexine, plastic leather footwear, and other related industries.

Ensuring the availability of technology and support under simple conditions is essential for formalising SME activities in the TSW sector. A large pool of skilled professionals, including leather engineers, chemists, and technicians, as well as trained shop-floor workers, will be vital for developing this sector sustainably.

Ferdaus Ara Begum. Sketch: TBS

Ferdaus Ara Begum is the CEO of BUILD, a public-private dialogue platform that works for private sector development.

Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinions and views of The Business Standard