Due to the global economic recession after the new crown pneumonia epidemic , the continued turmoil in Russia and Ukraine, and rising inflation in the United States and European countries, Bangladeshi leather traders, manufacturers and exporters are worried that the export of leather industry will slow down in the future.
Exports of leather and leather products have been growing steadily since 2010, according to the Bangladesh Export Promotion Agency. Exports increased to US$1.23 billion in the 2017-2018 fiscal year, and since then, exports of leather products have declined for three consecutive years. In 2018-2019, the export revenue of the leather industry fell to 1.02 billion US dollars. In the 2019-2020 fiscal year, the epidemic caused the export revenue of the leather industry to drop to 797.6 million US dollars.
In the financial year 2020-2021, exports of leather goods increased by 18% to $941.6 million compared to the previous financial year. In the 2021-2022 fiscal year, the export revenue of the leather industry hit a new high, with a total export value of 1.25 billion US dollars, an increase of 32% over the previous year. In the 2022-2023 fiscal year, the export of leather and its products will continue to maintain an upward trend; from July to October this year, leather exports increased by 17% to 428.5 million US dollars on the basis of 364.9 million US dollars in the same period of the previous fiscal year.
Industry insiders pointed out that the consumption of luxury goods such as leather is decreasing, production costs are rising, and due to inflation and other reasons, export orders are also declining. Also, Bangladesh must improve the viability of its leather and footwear exporters in order to survive the competition with Vietnam, Indonesia, India and Brazil. Purchases of luxury goods such as leather are expected to fall 22% in the UK in the second three months of the year, 14% in Spain, 12% in Italy and 11% in France and Germany.
The Bangladesh Association of Leather Goods, Footwear and Exporters has called for the inclusion of the leather industry in the Security Reform and Environmental Development Program (SREUP) to increase the competitiveness of the leather and footwear industry and enjoy the same treatment as the garment industry. The Security Reform and Environmental Development Project is a clothing security reform and environmental development project implemented by the Bangladesh Bank in 2019 with the support of various development partners and the government.
Post time: Dec-12-2022
