Leather Exports Could Hit $10bn: Commerce Minister

Bangladesh’s leather industry has the potential to generate more than US$10 billion in export earnings, emerging as a strong alternative export sector alongside the country’s major industries, Commerce Minister Khandakar Abdul Muktadir told Parliament on Monday.

Replying to a supplementary question from ruling party lawmaker Alhaj Jashim Uddin Ahmed (Chattogram-14), the minister said leather exports have remained stagnant at around US$1.10–1.15 billion annually over the past three years due to several structural challenges.

He said the relocation of tanneries from Hazaribagh to Savar, aimed at modernising the sector and ensuring environmental compliance, has adversely affected leather processing capacity because of implementation shortcomings.

“Leather processing capacity has declined significantly compared to previous levels,” the minister said.

He noted that the decline becomes particularly visible during Eid-ul-Azha, when both the collection and preservation of raw hides fall short of expectations.

To revive the sector, the government has undertaken several initiatives, including improving slaughterhouse operations in coordination with the Ministry of Livestock to ensure mechanised skinning and proper hide collection.

The government is also working to upgrade the Central Effluent Treatment Plant (CETP) in Savar from its current operational capacity of 14,000–16,000 cubic metres to its designed capacity of 25,000 cubic metres per day.

In addition, technical and financial support will be provided to tannery owners to establish their own Effluent Treatment Plants (ETPs), while factories in the Savar leather industrial zone will be brought under full environmental compliance.

“If these measures are implemented properly, the leather industry can emerge as a strong alternative export sector for Bangladesh,” the minister said.

Responding to another supplementary question from NCP lawmaker Atikur Rahman Mujahid (Kurigram-2), the minister said expanding trade facilities through Sonahat Land Port in the northern region could boost commercial activities, though the government would first assess the project’s feasibility.

On a separate question regarding alleged illicit financial flows, Abdul Muktadir described the issue as complex and said it requires extensive research and detailed analysis.

He noted that Bangladesh’s total trade volume, including imports and exports, now stands at around US$130 billion.

“We are aware of the concerns and conducting studies. If any irregularity is identified, the government will take appropriate action,” he told Parliament.