Noman Mahmud
Amid the outbreak of novel coronavirus infecting over 114,000 people with over 4,000 deaths globally since late last year, tanners in Savar Tannery Industrial Estate, outskirt of capital Dhaka, have halted export to China.
“Operation of most of tanneries in the Savar industrial zone apparently remain suspended since leather export stops on January 15,” Md Shakawat Ullah, general secretary of Bangladesh Tanners Association, told the Bangladesh Post.
Currently, Bangladesh exports 60 percent of its lather to China and imports 50 percent of leather processing chemical from the country, he added.
According to this tanners’ leader, Japan and Italy, among others, are the export destination for Bangladesh and they, too, stopped buying.
On spot visit to the Savar Tannery Industrial Zone, operation of most factories is seen suspended. “As many as 132 out 155 tannery factories were relocated their operation in Savar. Most of them are currently halted operation,”
Shakawat Ullah said. “Our buyers are, in fact, the people who export to China. As no export to China since coronavirus broke out, operation of our factory is apparently stopped for last two months,” Rafiqul Islam, manager of Pubali Tannery Industries Ltd, told the Bangladesh Post.
“We couldn’t even pay the workers’ wages,” he claimed.
Officials, however, claimed the situation is not as “complicated” as the tanners say. “Tanners in Bangladesh cannot export to the Europe because of not having the LWG (Leather Working Group) certificate. Thus, China becomes our major export destination,” Md Mostaque Hassan, chairman of Bangladesh Small and Cottage Industries Corporation (BCSIC), told the Bangladesh Post.
He said, “A total of 1355 points is required to get a LWG certificate. Of which, 200 points are allocated for BCSIC’s and 1155 for the tanners.
“The BCSIC has already got 100 points for CETP (Central Effluent Treatment Plant), which is already functional and the rest 100 points after complete solid wash process, we will also get it shortly. “But the rest 1155 points, which is on the tanners, and they earned zero as they are yet to ensure compliance issues,” Hassan added.
He went on saying that majority portion of chemicals and raw materials used in tanneries come from China, therefore the coronavirus outbreak in the country has taken ‘some affect’ on our tannery industry.
The senior government official, however, argued that import of garments accessories continues amid the outbreak, so leather processing chemical to come soon.
Hassan said, China processes our leather then exports it to the Europe, which is not happening now. So the European buyers will now turn to the small countries like Bangladesh. The European market will open when the tanners ensure the compliance issues and then Bangladesh will no longer have to rely on China, he added.
The BCSIC chief, however, said that tanners’ business are supposed to be batter amid backdrop as demand in domestic market would rise due no import of artificial leather for now.
“Our domestic market is worth about Tk 1,500 crore with half of it being occupied by Chinese and Indian products,” tanners’ leader Shakawat Ullah said.
But tanners cannot continue operation as chemicals are the out of stock, he added.
“There should be no crisis of chemicals and tanners may need to but it with little but higher price instead,” BCSIC chief Hassan said.
