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.
- Leather can be treated as a renewable resource.
- Availability of integrated production chain from raw materials to tanneries and leather goods.
- Availability of a large and rather inexpensive work force relative to other comparable manufacturing societies.
- Reputation of Bangladesh’s premium institutions grain leather.
- Price advantage of Bangladeshi leather in international market.
- Durability of leather products.
- Favorable business environment with existence of EPZ.
- Increasing global demand for leather products.
- High potential for quality raw materials and maximum value addition inside the country.
- Availability of cheap labour force can be the sustainable competitive advantage for the country.
- GSP (Generalized System of Preferences) facilities to exporters.
- 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 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|
|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
(US $ in Million)
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||
|March 2006-June 2011||Bangladesh Leather Service Centre (BLSC)||International Trade Centre (ITC)||BDT 375.18 Lac||
|July 2007-December 2007||“Market Development Support Programme for the Leather Sector particularly Leather goods” Project||German Development Cooperation (GTZ)||BDT 50.0 lac||
|2011-2016||Bangladesh Economic Growth Programme (BEGP)||USAID||BDT 940.0 lac||
|2017-2023||Export Competitiveness for Jobs (EC4J)||World Bank Group||US$ 119.12mn||