Potentials of leather sector remain unutilised

Bangladesh with its small geographical existence is however rich in its hides and skins production due to huge consumption of meat by its inhabitants. Presently it produces 180 million square feet of hides and skins most of which are being exported in the form of crust and finished leather and minor percentage in products to earn foreign exchange.

Leather industry of this country is age-old but the infrastructure as well as its overall performance do not meet the expectations. There are about 220 tanning industries throughout the country, out of which about 190 are concentrated at Hazaribagh tannery block of Dhaka city. And it does not make sense to the general industrial people that how could it be possible to continue such huge industrial activities within this unplanned and small industrial area of only 60 acres. There is not a single positive point to say in favour of the industrial infrastructure of these tanneries.

In 1973-74, the sectoral export earning was Tk 1,140 million and now, twenty years later, it is more than Tk 15,000 million a year. The figure could be increased by three to four times if its infrastructural developments could be made as desired since long.

The management of this sector is not up to the mark. No quality management, no marketing management, no floor management, even no trade management are in tune with present day tannery management. Nobody perhaps cares for this. Those engaged in tannery management seem very much fond of traditional way of working. No innovation, no risk taking and there is not much market exploring either. Everybody is for bank money. But the repayment system is not healthy.

But having all these negative windows the sector still stands high and is contributing a huge amount of foreign exchange to the national exchequer. We have seen high opportunities in the sector. But we need to create good management groups, competitive and professional marketing wing and a healthy production line-up.

Let's look at what happened and what is happening in the outer circuit of this sector. Outer circuit means public and private bodies who are engaged for the development of this sector. The public bodies like Export Promotion Bureau, Board of Investment, Customs, Leather College, and some others are doing their job within the framework and policy of the government. They are working as controlling and supporting bodies.

Lots of activities and numerous reports we have been watching since long from various agencies. The International Trade Centre (ITC), Geneva has been trying to develop the leather sector business over the last couple of months. It is heard that this agency is trying to establish a footwear design and development centre titled as Leather Service Centre (LSC), the homework of which has already been completed.

Recently, a council named Leather Sector Business Promotion Council (LSBPC) was formed under the direct supervision of commerce ministry. It's a long awaited forum, which could enlighten and bring the tanners on the highway of international leather business which can make them competitive internationally in the field of leather trade. But if it goes under the clutches of the middle-men or opportunist groups them all the expectations will go in vain and it would create another burden for the sector.

Every government wants to develop the country's socio-economic base through development of its existing infrastructure. But then the entrepreneurs, the business groups, public bodies, donors and all other related groups should work concertedly. There should not be any gap between the bodies engaged in the purchase, production, marketing and so on.

The leather sector of our country is facing serious drawbacks due to its poor industrial infrastructure, its back dated management practice, its inadequate marketing and technological drawbacks. Question may arise how can we overcome the problems and witness see a healthy and wealthy leather sector. Answer is simple, like:

a) Infrastrutural development by setting up a CETP (central effluent treatment plant) for a Leather City is a must. We can be hopeful as Bangladesh Small & Cottage Industries Corporation (BSCIC) has undertaken a programme for shifting the Hazaribagh tanneries to a planned and CETP based Leather City near Savar.

b) The management system of tannery business should attain an optimum quality to match the TQM (total quality management) leading towards ISO standardisation.

c) The marketing management as well as its arrangements should be made competitive and professional.

d) All the above activities would fail if the production process and productivity of this business do not meet the optimum desire both from qualitative and quantitative points of view. So technology transfer and development should be the priority.

e) Product diversification is necessary both for increased earning as well as creating more and more employment.

Jalal Uddin Ahmed is Assistant General Manager (Development and Expansion), BSCIC, Dhaka