Written by: Eshan Maitra
Leather Industry has promising possibilities for growth & national contribution. But poor management of the Leather City in Savar, is utterly discouraging any new investors. Also, limited capital, bank-loan complexities & lack of necessary training facilities it is failing to develop. All these issues keep piling up that is holding back investments in this sector.
All the tanneries supposed to move from Hazaribag to Savar, within 2016 as per time-limit given by the government. Though, only 75 out 155 tanneries could move till now. Even then, these moved factories are still busy tidying up their things. Meantime, the electricity, gas & other resource facilities are also quite not reaching to these industries properly.
Though, few young Bangladeshi entrepreneurs stepping up to make their own designs & grab the market with native products. But capital & loan complexities are posing to be their paralyzing handicap. Also, the cheap Chinese & Indian leather products still have the upper hand over the current market.
Experts suggest that, the Leather City mapping & structure should be revised & improved. Then, in order to encourage more young graduates to join this sector. The banks should provide simple-conditioned loans & necessary labor training facilities should be increased. These are very much necessary for achieving the 2021 target of 500 crores dollars’ worth exporting.