Leather, leather goods exports shine in August, grow by 24%

As the apparel exporters make their faces long over Russia-Ukraine war, leather and leather goods shippers look good.

According to the Export Promotion Bureau (EPB), leather and leather goods exports increased by 24 percent in August compared to July this year.

In July ’22 export of leather goods recorded some $99.41 million which aggregated $ 124.09 in August, says EPB data.

“As our primary and big markets are China and Japan, they have been less affected than the EU. That has made leather and leather products shipment better amid global adverse economic situations,” Belal Hossain, former president of Leather goods and Footwear Manufacturers and Exporters Association of Bangladesh (LFMEAB) told Business Insider Bangladesh.

He said: “The potential sector needs policy support from the government. If the sector gets a subsidy, it might grow like RMG.”

In the last couple of years, some 40 percent of the companies out of a total 155 have stopped exporting due to compliance issues, according to LFMEAB.

“Moreover, we cannot install a water treatment plant for all the tanneries. If the government takes steps to provide financial support, the sector will help boost the economy.”

Export of leather was aggregated $23.23 million in July-August, leather products $53.47 million and leather footwear $146.90 million, respectively.

In July, leather exports recorded $12.17 million, leather products $25.10 million and leather footwear $61.42 million, respectively.

Bangladesh has to enhance the export to achieve the vision for entering on top 10 leather exporting countries index by 2025.

In the fiscal year 2017-18, export earnings from processed leather dropped by 21 percent, from $232.6 million to $183 million. However, exports earning from the leather footwear posted a 7.48 percent growth to $607.88 million in FY 2018-2019, according to Export Promotion Bureau (EPB).

Meanwhile, export of the leather and leather goods reached $1,245.18 million in 2021-’22 FY which was $941.67 million in ’20- ‘21FY.

Industry insiders think if the export keeps on following the trend, by the end of the fiscal year it will reach $1,500 million.

The most promising markets for Bangladeshi leather, leather goods, and footwear products are Germany, Italy, France, Netherlands, Spain, Russia, Brazil, Japan, China, UK, Singapore, Poland, the USA, Canada, and Taiwan, etc.