A window on the current state of the Bangladesh leather industry has been provided by the country’s recent International Leather Fair – the fifth in the series.

Eighty-two leather firms including 27 from abroad participated in the three-day fair, which was jointly organised by the Bangladesh Finished Leather, Leather Goods and Footwear Exporters' Association (BFLLFEA) and Bangladesh Tanners' Association (BTA).

Held in Dhaka, the event first off saw the Bangladesh Prime Minister Begum Khaleda Zia reveal plans for a "leather industry estate" at Savar.  To be constructed at a cost of Tk1770 million ($31 million), the zone will provide a new home for around 185 leather-related businesses that will be relocated from the city.

In her inaugural address, Prime Minister Zia pledged the all-out commitment of her fifteen-month old government to the development of the industry.  At the same time, she highlighted its potential for generating exports and encouraging foreign investment.

Speaking later, however, Finance Minister M Saifur Rahman expressed her disappointment at the continuing low quality and high cost of the industy’s output, especially in view of the high level of profits being made in some parts of the industry.  Responding to pleas for a greater level of subsidy, she suggested that the industry should look to itself first if it wanted to improve its prospects. On a more conciliatory note, however, she said would continue to look favourably on the reduction of duties on raw materials and suggested that rather than relying on the nationalised banks, business leaders should first look to the private sector for soft loans.

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