In an attempt to revitalize the second largest export sector - the leather industry, the government plans to dedicate a separate authority to oversee the industry.
On June 13, the Ministry of Industries released on its website a draft of the "Bangladesh Leather Industry Management Authority Act 2024" (BLIMAA 2024). Officials have stated that they will consider feedback from stakeholders before finalizing the law.
The proposed authority will be responsible for setting up and managing both public and private leather industry zones, ensuring effective oversight and development.
According to the Export Promotion Bureau, leather and leather goods exports in FY23 amounted to over $1.22 billion, accounting for just 2.4% of that year's total export earnings. In the first 11 months of FY24, the sector's exports reached $961 million, a 14.17% decline compared to the same period the previous fiscal year.
Four-member authority
Under the draft statute, the authority will have three members and a chairperson. The Savar Leather Industrial Zone will house the main office.
The chairman will hold the position of an additional secretary, and the members will be selected from joint secretary-ranked officials.
Eight-member board
The Ministry of Industries' secretary or senior secretary will chair the eight-member board that will run the authority, while the chairman of the Leather Industry Management Authority will act as the member secretary.
BLIMAA 2024 also stated that the director of the Leather Engineering and Technology Institute at Dhaka University, the president of the Bangladesh Tanners Association, the president of the Bangladesh Finished Leather, Leather Goods, and Footwear Exporters Association, the chairman of the Bangladesh Small and Cottage Industries Corporation (Bscic), and representatives from the Ministry of Environment, Forests, and Climate Change are among the other members.
Stakeholders
Md Sakhawat Ullah, the general secretary of the Bangladesh Tanners Association, told the media that this decision was made just in time. The authority must be established as soon as possible to enable prompt action for the advancement of the leather industry."
He added that many efforts have been made to advance the sector, but notable progress has not been achieved. The challenges faced by the leather business will be resolved if the new authority is established, as it will allow for quick and effective action.
In 2019, the government formed a task force of ministers, secretaries, and industry stakeholders to review and address the leather sector's challenges. This task force was responsible for assessing the industry's condition, identifying issues, proposing solutions, and making recommendations for development, market expansion, and export growth.
However, stakeholders have noted that despite the efforts of this high-profile task force, the leather industry has not seen significant improvement.
