Govt to support idle Savar tanneries, enforce green rules

The government will provide technical and financial assistance to tanneries in Savar that have yet to begin production following their relocation from Hazaribagh, Commerce Minister Khandakar Abdul Muktadir said.

He also stressed that environmental compliance, modern waste management and international certification were priorities for strengthening the global competitiveness of Bangladesh's leather industry.

The minister made the remarks while inaugurating the Bangladesh-Netherlands Sustainable Trade Forum 2026 and the CBI Home Textiles and Leather Programme at a hotel in the capital on Wednesday, according to a Commerce Ministry press release.

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

Muktadir warned that tanneries failing to comply with environmental regulations would not be allowed to operate.

Highlighting the sector's export potential, he said Bangladesh exported leather and non-leather products worth around $1.78 billion last year. He identified the European Union as a key market for Bangladesh's leather products, while neighbouring India had also emerged as a major buyer.

The minister emphasised the need to improve product quality, ensure environmental compliance and adopt production practices that meet international market standards.

Referring to the prolonged relocation of tanneries from Hazaribagh to Hemayetpur in Savar, he said the delays had hampered the leather industry's development.

He said the government was taking steps to address the sector's longstanding problems and help relocated tanneries resume operations.

Under the planned measures, factories covering 50,000 square feet or more would be required to install their own effluent treatment plants (ETPs).

Initiatives were also underway to increase the capacity of the Central Effluent Treatment Plant (CETP) at the Savar Tannery Industrial Estate and install an improved chromium recovery unit to strengthen waste management.

The minister said these measures would help Bangladesh's leather industry improve its competitiveness in international markets.

Turning to the cottage, micro, small and medium enterprises (CMSMEs) sector, Muktadir said its development was essential for inclusive economic growth, job creation and reducing income inequality.

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

The minister also called for removing financing barriers facing small entrepreneurs, saying many promising businesses struggle to secure bank loans because of complicated documentation requirements and procedural hurdles.

On Bangladesh-Netherlands trade relations, he said stronger bilateral cooperation could create opportunities for sustainable industrialisation, technology transfer, skills development and greater access to international markets.

He said Dutch technological and institutional expertise could help make Bangladesh's export-oriented industries, particularly home textiles and leather, more competitive.

Muktadir also appreciated the support provided by the Dutch government, CBI and development partners for the country's SME and leather sectors.

The CBI Home Textiles and Leather Programme, launched at the event, will focus on capacity building, 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 programme.

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