-By Ankita Dutta
Bangladesh’s leather and leather goods exports showed stability during the first eleven months of fiscal year 2022-23. Data released by the Export Promotion Bureau (EPB) revealed that between June 2022 and May 2023, outbound shipments of leather and leather goods valued at $1,120.24 million were recorded, a slight increase of 0.42 percent from the previous year. Likewise, within the timeframe of June 2021 to May 2022, the total value of exports pertaining to leather and its products amounted to $1,115.58 million.
The country laid out a strategic target of $1,301.81 million for exports during the first eleven months of this fiscal year. Thus, the actual shipments resulted in a deficit of 13.95 percent, falling short of the target. Bangladesh has set a broader goal to reach $1,440 million for the exports of leather and leather products. In 2022, the total export value of these products amounted to $1,245.18 million.
Within the categories of leather and leather goods, the export of leather goods (Chapters 42-43) increased by 19.43 percent, reaching $361.47 million compared to $302.66 million in the same period in the previous year. Conversely, exports of leather (Chapter 41) experienced a decrease of 18.11 percent, recording $114.93 million in the current year, compared to $139.93 million during the same period in the previous year. Moreover, the export figures for leather footwear (Chapter 6403) experienced a decline of 4.28 percent as it generated $644.18 million in contrast to the $672.98 million exported during the
corresponding period in the past year.
The leather industry is significant for Bangladesh’s economy, contributing to the country’s total GDP and export earnings. However, the sector faces various challenges, including the high cost of raw materials, inefficient supply chain management, and limited access to modern technologies. Moreover, the industry has been continuously affected by the COVID-19 pandemic, leading to disruptions in global supply chains and changes in consumer behavior.
To address these challenges and boost the leather industry’s competitiveness, the government has taken various initiatives, including setting up specialized economic zones for the leather industry, providing fiscal incentives, and investing in research and development. Additionally, the government has increased its focus on promoting local production of leather goods and exports to new markets.
To sum up, during the initial eleven months of the current financial year, the export statistics of leather as well as leather commodities from Bangladesh have exhibited a consistent rate. However, the sector still needs to overcome several challenges to remain competitive and reach its export targets. The government’s supportive initiatives, coupled with private-sector efforts to innovate and upgrade the industry, will play a crucial role in realizing the industry’s full potential.
