Tanners fear rawhide smuggling due to non-compliance of tannery estate

With Eid-ul-Azha around the corner, tanners in the country are expressing concerns over the possible smuggling of local rawhide to India. The industry's biggest season is at risk due to failing compliances caused by the not-fully-functional Central Effluent Treatment Plant (CETP) at the Savar Tannery Industrial Estate.

"If we fail to ensure compliance in the industry, local leather (rawhide) may go to India illegally, as they will be able to offer better prices due to the Leather Working Group Certification (LWG)," said Shaheen Ahmed, president of the Bangladesh Tanners Association (BTA) during a seminar held at the Economic Reporters' Forum (ERF) auditorium on Monday.

He further pointed out that the Indian government has established at least seven CETPs to ensure compliance in the leather industry across two states, including West Bengal. However, the CETP at the Savar Tannery Industrial Estate is not yet fully operational.

At the seminar titled "Action for Sustainable Development of the Leather Industry" – jointly organised by the BTA and ERF with the support of the Asia Foundation, speakers alleged that the Bangladesh Small and Cottage Industries Corporation (BSCIC) neglected its responsibilities, leading to the failure of the Savar Tannery Industrial Estate in ensuring the full functionality of its only CETP and solid waste management. This failure occurred despite the relocation of tanneries from Hazaribagh six years ago, they observed.

The tanners suffered a significant loss of buyers after the relocation due to their failure to maintain compliance. As a result, they were unable to obtain the LWG certification, which Shaheen Ahmed identified as the main reason for the decline in leather exports and the low prices received for local leather.

Responding to a question, the BTA president revealed that two local tanneries have received approval to set up individual Effluent Treatment Plants (ETP). While one of them, Bay Tannery, is currently under construction, the other one, Apex, is planning to establish one, he added.

"But if we want to brand the sector, the country needs at least 30 tanneries with LWG-certified tanneries, which will help us to get better prices," he maintained.

Abul Kalam Azad, president of the Tannery Workers Union, emphasised the importance of social compliance, environmental standards, and quality assurance in obtaining the LWG certification.

Drawing from his experience during a visit to Chennai, he noted that while the leather quality there is not superior to that of Bangladesh, they have managed to obtain compliance certifications.

Tariqul Islam, managing director of Merchant Tannery and adviser of the BTA, identified the reduction of water consumption as a key barrier to obtaining LWG certification.

He added that despite being a widely discussed issue, the tanneries have struggled to address it effectively.

Tariqul pointed out the significant policy support received by the RMG sector from the government, which has yet to be seen in the tannery sector.

Ferdaus Ara Begum, chief executive officer of the Business Initiative Leading Development (BUILD), highlighted the tanners' failure to ensure the pre-treatment of waste, which has contributed to the CETP's inefficiency.

She emphasised that both parties should be equally concerned about this issue.

Mohammad Refayet Ullah Mridha, president of the ERF, noted that the European Union has made due diligence and human rights mandatory for doing business. This means that Bangladesh must ensure labour rights and environmental compliance to access the European market.

Abul Kashem, secretary General of the ERF, also shared his insights at the event.