Leather is the second largest sector of Bangladesh next to RMG which is considered as highest priority sector of the government for its increasing high value addition. The leather sector accounts for about 2.96% of total export earnings of Bangladesh. The principal raw materials for this sector are cowhides and goatskins. 112-115 big units have facilities for processing wet blue leather only. The remaining 91-95 small, medium and large units having reasonable facilities produce crust and finished leather. Over 50 manufacturers are producing various leather items such as footwear, travel goods, suitcases, briefcases, fashion accessories, belts, wallets, hand bags, case holders etc. for overseas export. The Black Bengal goat skins from Bangladesh enjoy an excellent reputation for quality worldwide.

Export Policy 2003-06 recognized formation of sector/product-based business promotion councils (hereinafter mentioned as ‘Council’) for export promotion and diversification through addressing problems related to capacities of the industry in particular. In this connection, Leather Sector Business Promotion Council (LSBPC) has been established on February 2004 under Ministry of Commerce to promote the export of Leather and Leather goods of

Objectives of LSBPC:

To promote the export of leather, leather goods, leather footwear and the components, help industry acquire the right technology, develop export-marketing skills, impart training, workshop/seminar to develop, promote the value added products in the leather sector; to focus on identification of production and export related problems and preparation of policy recommendations for the Government, create awareness on different compliance standard and so on.

Bridge Overview

  1. Leather can be treated as a renewable resource.
  2. Availability of integrated production chain from raw materials to tanneries and leather goods.
  3. Availability of a large and rather inexpensive work force relative to other comparable manufacturing societies.
  4. Reputation of Bangladesh’s premium institutions grain leather.
  5. Price advantage of Bangladeshi leather in international market.
  6. Durability of leather products.
  7. Favorable business environment with existence of EPZ.
  8. Increasing global demand for leather products.
  9. High potential for quality raw materials and maximum value addition inside the country.
  10. Availability of cheap labour force can be the sustainable competitive advantage for the country.
  11.  GSP (Generalized System of Preferences) facilities to exporters.
  12. Duty free access in Major Markets

    Activities of LSBPC

    LSBPC is implementing the following activities

    a) Capacity Building Programme: Awareness Programme, Workshop, Seminar, Training Programme

    i) Awareness creation workshop for tannery owners, managers, meat traders, butchers in different topics.
    ii) Technical Training Programme on manufacturing and quality control of Derby Style Footwear (Phase-1) and Manufacturing and Quality control of Small Leathergoods (Money bag/ Wallet) Phase-1.

    b) Fair Participation: Cooperation in participation in Int’l Trade Fairs and also Dhaka Int’l Leather Fair

    c) Overseas Trade Mission :Organize overseas trade mission based on the demands from the respective

    d) Sector specific up gradation & new technology transfer

    e) Promotional programme & public relation programme

    f) Market Studies & Research

    g) Linkage Development

    h) Round Table Discussion

    Executive Committee

    Executive Committee of the council

    1. Secretary, Ministry of Commerce Ex-officio Chairman
    2. Vice-Chairman, Export Promotion Bureau Ex-officio Co-Chairman
    3. The Presidents from Three Associations (Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association (BFLLFEA), Bangladesh Tanners’ Association (BTA), Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh (LFMEAB) Vice-Chairmen
    4. One Representative (1) from Ministry of Foreign Affairs not below the rank of Director General Executive member
    5. One Representative (1) from Ministry of Industries not below the rank of Joint Secretary Executive member
    6. Representative (1) from National Board of Revenue Executive member
    7. Joint Secretary (Export), Ministry of Commerce Executive member
    8. One member from Export Promotion Bureau Executive member
    9. One Representative from FBCCI Executive member
    10. Representative from DCCI Executive member
    11. Five Representative from BFLLFEA Executive member
    12. Two Representative from BTA Executive member
    13. Five Representative from LFMEAB Executive member
    14. Director,ILET Executive member
    15. Representative from BSCIC Executive member
    16. Representative from Leather Research Institute Executive member
    17. Ten percent of Associated members not exceeding two nominated by the Executive Committee of the Council Executive member
    18. Two members from CIP's in leather Sector nominated by the Executive Committee of the Council Executive member

    Export Market of Leather, Leather-goods and Footwear

    Leather and leather products are exported to different countries of the world, the major importing countries are Australia, China, Italy, Japan, Hong Kong, Spain, Germany, UK and USA, Korea, Russia, Turkey, Thailand, Vietnam, Taiwan etc.

      Export Scenario of Leather

      Export of Leather, Leather Footwear and Leather Goods

      Sub-sectors 2015-16 2016-17 2017-18 2018-19 2019-20
      (US $ in Million)
      Value Value Value % of
      Value % of
      Value % of
      Value % of
      Leather 277.90 277.90 232.61 18.85 183.10 16.87 164.62 16.14 98.31 12.33
      Leathergoods 388.22 388.22 464.43 37.64 336.81 31.03 247.28 24.25 220.55 27.65
      Footwear 494.83 494.83 536.96 43.51 565.60 52.10 607.88 59.61 478.75 60.02
      Total 1,160.95 1,160.95 1,234.00 1085.51 1019.78 797.61
      Annual Growth +2.69% +2.69% +6.29% -12.03% -6.06% -21.79%

      Source: Export Promotion Bureau of Bangladesh (EPB)

      Projects Implemented by LSBPC

      Duration Project Name Name of the development Partner Approx. Contract value (in US$ equivalent) Role on the Assignment
      October 2005-September 2006 Development of the supply and export of leather-ATF Project International Trade centre UNCTAD /WTO (ITC) USD 10,980.00
      • Build the capacity of the tanneries to produce quality leather for export and to supply the local footwear and leather goods industry with high standard raw materials;
      • Develop exports of finished leather and/or establish international partnerships for production and marketing; and
      • Design a sectoral trade development strategy for the tanning industry.
      March 2006-June 2011 Bangladesh Leather Service Centre (BLSC) International Trade Centre (ITC) BDT 375.18 Lac
      • Improving product design and development capacity (CAD-CAM, using 2 D or 3D)
      • Introducing quality testing and certification system
      • Developing technical and managerial capacities
      • Fostering promotion and internationalization of enterprises
      • Facilitating technology transfer
      • Training of operators- sewing, cutting, assembly lines (SATRA based)
      • Render services on Pattern grading, Pattern cutting etc.
      • Training for style Designers/ Technical Designer and shoe making technicians
      July 2007-December 2007 “Market Development Support Programme for the Leather Sector particularly Leather goods” Project German Development Cooperation (GTZ) BDT 50.0 lac
      • Building capacity of selected enterprises involved in production and export of leather goods through technical raining in design and development and marketing of the roducts locally and internationally
      2011-2016 Bangladesh Economic Growth Programme (BEGP) USAID BDT 940.0 lac
      • Help link exporters to international markets
      • Help producers and exporters increase the quality of their  products and their lead time in response to the market
      • Enhance the capacity of the value chain actors by facilitating need based training
      • Make a special effort to integrate women, youth and minorities to economic development
      • Strengthen the testing and certification processes.
      2017-2023 Export Competitiveness for Jobs (EC4J) World Bank Group US$ 119.12mn
      • Undertake programs to create awareness about markets; gather market intelligence, market, and product-specific branding initiative.
      • Export Readiness Fund (ERF) – matching grant a challenge fund to directly assist firms with environmental, social, and quality (ESQ) assessments, and incentives to implement improvements.
      • Sector-specific technical training on ESQ and reference materials such as compliance handbooks, etc.
      • Establish four technology centers to enable enterprises to access modern technologies, advanced skills, and other relevant business development services.