Bangladesh – Leather footwear exports at five year low
In the first quarter of the current fiscal year, Bangladesh's leather footwear industry experienced a decline in export earnings, reaching a five-year low of $141.83 million. This was due to a reduction in export orders from the Eurozone, which has been affected by the ongoing economic crisis.
According to the Export Promotion Bureau, and reported by the Daily Star (Bangladesh), data shows a 32.77% decrease in year-on-year export earnings. In the corresponding period of the previous fiscal year, the industry shipped goods worth $210.96 million. Despite the challenges of the Covid-19 pandemic, the industry still managed to ship $148.36 million worth of goods between July and September of FY 2020-21.
Apex Footwear Limited's leather footwear exports have declined by 58% in September and 37% in August compared to last year. CFO Dilip Kajuri says it's uncertain how much further exports will drop in October, with no export orders for the next three months due to the pandemic.
Regarding the continuous decline of export orders, Kajuri blamed economic conditions in the Eurozone, which is vulnerable due to the impact of the Russia-Ukraine war.
The Leathergoods and Footwear Manufacturers & Exporters Association of Bangladesh has also reported a decrease in exports. They attribute this to the Eurozone's reluctance to purchase luxury items like leather shoes.
The association's Senior Vice President, Mohammed Nazmul Hassan Sohail, also told the newspaper that global brands are unwilling to accept local leather due to the Central Effluent Treatment Plant's (CETP) lack of a Leather Working Group certificate.
