Troubled times in Bangladesh
10/11/2008
Leather exporters in Bangladesh are facing turbulent times because of a fall in the volume of exports and in the prices of their products in international markets.
“The fall in both exports and prices is a direct effect of the decline in leather consumption in international markets,” said Tipu Sultan, president of Bangladesh Finished Leather and Leather Goods Exporters Association, in a statement to local media.
The price of leather was $4.95 per square foot in fiscal 2006–07, which declined to $4.70 last fiscal year, translating to a 5% decline, according to Bangladesh Bank (BB) data.
“The price of finished leather and leather products may drop up to 40% in the current fiscal year,” Mr Sultan said.
He said the industry is going to face serious problems this year as export of finished leather has already marked a 20% decline in the first quarter of the current fiscal year.
He also said the fall in the prices of leather products in the international markets could result in a 25% decline in exports by the end of the fiscal year. This will directly concern the 195 tanneries in the country.
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