Leather sector exports may fetch Tk 1,700cr this fiscal

Exporters hope to earn at least Tk 1,700 crore by exporting leather and leather goods this fiscal as they organise an international leather fair in Dhaka from tomorrow aiming to promote their products and expand export market.

Bangladesh Finished Leather, Leathergoods and Footwear Exporters' Association (BFLLFEA) chairman Rezaul Karim Ansari yesterday said exporters expected increased earning since the world market is recovering from the September 11, Iraq war and Sars (Severe Acute Respiratory Syndrome) shocks.

Ansari was speaking at a press conference on the eve of the three-day 6th Dhaka International Leather Fair 2004 at Sonargaon Hotel. Invited buyers from different countries are expected to visit the fair to see the Bangladeshi leather goods.

Bangladesh earned Tk 1377.72 crore last fiscal (2002-03) from the leather sector, Tk 90.97 crore down from previous fiscal. The BFLLFEA attributed the slump in earnings to the adverse global situation.

"We expect to get $10 million spot orders in the fair," the BFLLFEA chief said. Last year, the exhibitors got $7 million spot orders.

The BFLLFEA chief said the fair has been organised to display the latest developments of the country's leather sector, which is the third largest export-earning sector after ready made garments and frozen foods.

The BFLLFEA leaders urged the government to provide cash incentives to crust and finished leather exports. Now, exporters get 15 percent cash incentives on leather goods export.

"If the sector gets policy support from the government, leather and leather goods can fetch Tk 4,000-5,000 crore a year," the BFLLFEA chairman said.

He also urged the government not to restrict crust leather export before the relocation of Dhaka's Hajaribagh-based tanneries to new leather industrial estate at Savar, which will be complete by 2005.

The prime minister on January 26 last year announced the establishment of leather estate -- Chamra Shilpa Nagari -- at Savar at a cost of Tk 177 crore.

A total of 70 leather firms including 24 foreign companies will participate in the fair. Major participating countries are the US, UK, India, Italy, Germany, South Africa, the Netherlands, Switzerland and Spain.

Prime Minister Khaleda Zia is expected to inaugurate the fair jointly organised by the BFLLFEA and Bangladesh Tanners Association (BTA).

Various types of finished products like footwear, bags, belts, travel kits, leather garments and wallets will be put on display at the fair. Besides, chemicals and accessories for producing leather goods will also be displayed.

A fashion show, managed by Dream Entertainment, also will be held on Wednesday, second day of the exhibition.