Lack of environmental clearance barrier to Hazaribagh leather goods export

Leather factories in Old Dhaka's Hazaribagh area, despite having great potential, are failing to export their finished goods only because of a lack of clearance certificates from the Department of Environment, manufacturers have said.

"Hazaribagh factories have been producing finished leather goods since the relocation of tanneries from the area to Savar. Rawhides no longer enter Hazaribagh. As such, they deserve environment certificates," said Syed Nasim Manzur, president of the Footwear Manufacturers and Exporters Association of Bangladesh.

"As the clearance certificate is mandatory for exports, we urge the government to issue the certificates to Hazaribagh factories so that small and medium entrepreneurs there can grow," he added while addressing a seminar at the Parjatan Corporation Bhaban in the capital's Agargaon on Thursday.

Hazaribagh now accommodates some well-reputed brands, which can manufacture a wide variety of leather goods, Nasim Manzur noted and called for government policy support for further development of the leather goods hub.

SME Foundation Chairperson Md Masudur Rahman, its Managing Director Md Mafizur Rahman, Deputy General Manager Abu Monjoor Sayeef, and Environment Department Director General Abdul Hamid, among others, were present at the event, "The Potential of Leather Goods Cluster at Hazaribagh and Way Forward", and discussed the opportunities and challenges of the leather hub that accommodates some 350-400 small factories and outlets.

"Currently, leather goods manufacturers depend on imports for different raw materials. The government should promote backward linkage so that the materials can be produced locally," the association president said, adding that some 100 small components and 52 components are required to make bags and shoes respectively.

"If we import most of the components, it increases our production cost and lead time. Our lead time is nearly 100 days, which is only 42 days for Vietnam, and 60 days for India. The lead time should be reduced anyhow. Otherwise, we will be in a struggle for survival in the export market."

Mentioning that the Rajdhani Unnayan Kartripakkha had identified the Hazaribagh area as red a few years ago, for which entrepreneurs there face hurdles in applying for bank loans and others, Nasim Manzur urged the development authorities to backtrack in the interest of overall betterment.

"The government is looking to export leather and leather goods worth $10 billion by 2030. I think the target can be increased further. We are 16th in position in terms of exports but we are among 10 countries in production. The global market for leather shoes is worth $142 billion, with $26 billion in the USA alone. Government policy support can help us grab a bigger slice of the large market."

On the Savar leather industrial park, he said the country is yet to see an eco -friendly leather city. "This is our failure. We have the key raw material, leather, which has high demand, and we have the ability to produce goods. Yet we are not doing well and getting good prices because of the lack of environmental clearance and some other issues."

Environment Department Director General Abdul Hamid said the department has been working to ease the process of obtaining environmental clearance for small product factories at Hazaribagh.

"We will make our efforts for the development of the leather products manufacturing cluster. The government is also trying to allocate space near the Savar tannery village for such small entrepreneurs," he added.

SME Foundation Chairperson Md Masudur Rahman said the Hazaribagh cluster is able to significantly contribute to the economy of the country as well earning foreign currency. "Policy support is a must to make this happen," he added.