After Eid-ul-Azha, the leather industry of Savar became bustling. Trucks carrying raw hides from different parts of the country started arriving at the tanneries here. Workers got busy processing raw hides. However, these tanneries cannot participate in the main competition in the international market due to the lack of a certificate from the Leather Working Group (LWG), an organization working to reduce the harmful environmental impact of the leather industry worldwide. Therefore, Chinese buyers are the only hope. But this time, they are not showing much interest in buying leather, citing the new tariff policy of the United States. The buyers who are coming are not willing to pay a fair price. As a result, tannery owners are forced to sell leather at a loss. Tannery owners complain that they have become hostages to a syndicate of Chinese buyers.
Bangladesh Tanners Association Senior Vice President Shakhawat Ullah told Bonik Barta, “Our peak time starts after Eid-ul-Azha. During this period, Chinese buyers place numerous orders and purchase leather. But this year the situation is exceptional. Chinese buyers are not placing orders. They say that leather cannot be sold due to the US tariff policy. As a result, our sales have also decreased.”
Expressing fears that the leather industry in Savar could be shut down at any time, he added, “The condition of this industry is already pathetic. There is no Central Effluent Treatment Plant (CETP) or solid waste management system in place here. Although several factories have the capacity, they are unable to directly enter the US and European markets due to a lack of LWG certificates. The government is also not taking any initiative. As long as environmental pollution persists, we will be unable to compete in the international market. As a result, we have to remain dependent on China.”
Imam Hossain, managing director of ABS Tannery, spoke in a similar tone. He told Bonik Barta, “If there are no buyers, who will we sell the leather to? The old leather is still lying around. Despite that, we bought raw hides during the Eid season. But it's all our fault, we syndicate. I can't sell leather at a higher price. The government should create a market; we will buy leather at a higher price. We have repeatedly said, fix the CETP and the solid waste management system. We will see about the rest, how to get buyers.”
Expressing his anger, he added, “The hides that I used to sell for $2.50 to $3 in Hazaribagh, now I have to sell those for 40-50 cents. Even then, there are no buyers.”
At this time, Imam Hossain gave an example of how the syndicate of Chinese buyers is reducing the price of the product. He said, “After preparing EFGS grade leather for sale, when the buyer comes to see it, they say various things and leave out a large portion. As a result, there is no chance of grading that leather as good quality. Then they (the buyer) inform the matter to their known buyers and agencies. After that, no one can sell that leather at a good price; the price automatically decreases. At some point, the leather has to be graded as TR and sold at a loss.”
According to data from the Export Promotion Bureau (EPB), Bangladesh exported leather worth $128.21 million in the 2024-25 fiscal year (FY), compared to $142.54 million in the FY 2023-24. This means that exports have decreased by 10.05 percent in the space of one year.
In the overall situation, there is no roadmap on when the CETP and solid waste management system will be established. As a result, it has become impossible for this industry to get LWG certification. However, traders are also blaming the short-sighted decisions of the previous government, errors in the planning of the Bangladesh Small and Cottage Industries Corporation (BSCIC), corruption, and negligence.
Meanwhile, the Anti-Corruption Commission (ACC) has uncovered evidence of more than BDT 4.5 billion being looted from the CETP construction project.
Recently, after visiting Savar, Adviser to the Ministry of Environment, Forest, and Climate Change, Rizwana Hasan, stated that due to various mismanagement and irregularities, the CETP has never functioned properly. Solid waste management suffers the same fate. As a result, there is no option but to remove CETP from BSCIC and establish a new one.
Industries Secretary Obaidur Rahman had said the same thing. After Eid, while visiting the leather industry, he told reporters, “There was corruption in the construction of CETP. The ACC is investigating those responsible. The deposit of the Chinese contractor, who committed irregularities, has been withheld. Now, a team of experts from the European Union is assessing the overall aspects of CETP and solid waste management. We will work according to the roadmap given by them in the future. It will have to be built anew.”
When the tannery industry was shifted from Hazaribagh to Savar, BSCIC had said that this industrial city would be environmentally friendly. As a result, European buyers would be attracted, and LWG certificates would be obtained. As a result, the price of leather would also increase. But even after nine years, the leather industry in Savar continues to pollute the environment and the Dhaleshwari River.