Govt to support reopening of closed Savar tanneries: Commerce Minister

The government will provide necessary technical and financial assistance to tanneries at Savar that have yet to begin production after relocation from Hazaribagh, Commerce Minister Khandaker Abdul Muktadir said on Wednesday.

He also said the government has prioritised environmental compliance, modern waste management and international certification to enhance the global competitiveness of Bangladesh's leather industry.

The minister made the remarks while speaking at the inauguration of the Bangladesh-Netherlands Sustainable Trade Forum 2026 and the CBI Home Textiles and Leather Programme at a hotel in the capital, said a PID handout.

The event was jointly organised by the Netherlands' Centre for the Promotion of Imports from Developing Countries (CBI) and LightCastle Partners.

The minister also warned that no tannery failing to meet environmental regulations will be allowed to operate.

Muktadir said Bangladesh has significant potential in exporting leather and leather goods, noting that the country exported products worth around US$1.78 billion in leather and non-leather categories last year.

He identified the European Union as an important and promising market for Bangladesh, while neighbouring India has also emerged as a major buyer of Bangladeshi leather products.

He stressed the need to ensure product quality, environmental compliance and production systems that meet international market requirements.

Referring to the prolonged relocation of tanneries from Hazaribagh to Hemayetpur in Savar, the minister said the delay had hindered the development of the leather sector.

The government is now taking effective initiatives to address the sector's existing problems.

He said every factory with an area of 50,000 square feet or more would be required to install its own effluent treatment plant (ETP).

The minister said initiatives were also being taken to enhance the capacity of the Central Effluent Treatment Plant (CETP) at the Savar Tannery Industrial Estate and install an improved chromium recovery unit to make waste management more effective.

Once implemented, these measures would help Bangladesh's leather industry strengthen its position in international markets, he added.

Highlighting the importance of the cottage, micro, small and medium enterprises (CMSMEs) sector, Muktadir said its development was essential for inclusive economic growth, employment generation and reducing income inequality.

The sector currently contributes less than one-fourth of the country's gross domestic product (GDP), he said, stressing the need to raise its contribution to at least 60 percent to reduce economic disparities.

Emphasising the need to remove financing barriers for small entrepreneurs, the minister said many promising entrepreneurs were being deprived of necessary funds due to complicated documentation and procedural hurdles in obtaining bank loans.

On Bangladesh-Netherlands trade relations, the minister said cooperation between the two countries could create new opportunities in sustainable industrialisation, technology transfer, skills development and expanded access to international markets.

He said the Netherlands' technological and institutional expertise could play an important role in making Bangladesh's export-oriented sectors, particularly home textiles and leather, more competitive.

He also appreciated the support extended by the Dutch government, CBI and development partners for the development of Bangladesh's SME and leather sectors.

The CBI Home Textiles and Leather Programme was also inaugurated at the event, focusing on capacity development, compliance with international standards and expanding export opportunities.

Dutch Ambassador to Bangladesh Joris van Bommel and CBI Managing Director Judith Arends also spoke at the event.

Representatives from the public and private sectors, development partners, entrepreneurs and other stakeholders attended the programme.