Dhaka, Bangladesh (CU)_ Despite its high quality leather, Bangladesh is falling behind in the global market as its traders are compelled to ship leather to China at low costs. According to the regulations, anyone who sells leather must hold a Leather Working Group (LWG) certificate, the only institution in the nation with the entire certification.
Taking advantage of the opportunity, Chinese enterprises are purchasing leather at a discounted price. According to Bangladeshi media sources, China places little emphasis on this certificate. The Bangladesh Tanners Association (BTA) estimates that around 70 percent of leather and leather goods are exported from the nation, but is unable to give more exact data. Accordingly, half of all exports are shipped to China, and the remaining 30% are utilized by the country’s domestic industry.
According to BTA statistics, Japan, South Korea, Vietnam, and three European nations, England, Italy, and Portugal, export the most exportable leather. In addition, some skins are also sold in various American nations. The amount of leather exported by these nations is equivalent to or a little more than the amount of leather exported to China, where the cost of leather is lower than half of that of these nations.
According to Md Sakhawat Ullah, general secretary of the BTA, Bangladeshi traders are compelled to remain in China’s syndicate market since the compliance issue is flawed. Ullah said, “I can’t use it even though it has unlimited sources worldwide. Not certified by the Leather Working Group (LWG), the global certification body for the leather industry. As a result, I am failing to capture the big market. Again, it is not possible to ensure the fair price of leather in the local market.” According to merchants, they are compelled to ship leather to China at a low cost. After overcoming the impact of the COVID-19 pandemic, sales and marketing of leather goods have risen in several European nations and America. Due to this, prices on the global market also climbed; but, China is purchasing half of the country’s leather for an extremely low price.
