‘Leather sector could earn $12b annually’
Industries minister blames ‘unplanned’ Savar tannery relocation
Daily Sun Report, Dhaka
Published: 17 May 2026, 12:00 AM
Industries Minister Khandakar Abdul Muktadir on Saturday said Bangladesh’s leather sector remains one of the country’s most promising export industries, but the “unplanned and negligent” relocation of tanneries from Hazaribagh to Savar has significantly constrained its growth potential.
Speaking after visiting the Central Effluent Treatment Plant (CETP) at the Savar Leather Industrial Estate in Hemayetpur, the minister said the sector had been “effectively damaged” over the past several years due to poor planning, mismanagement and inadequate infrastructure.
According to a press release issued by the industries ministry, Muktadir said Bangladesh could earn up to US$12 billion annually if all raw hides collected across the country were properly processed and exported.
Ahead of Eid-ul-Azha, the minister warned that the existing CETP lacks the capacity to handle the sharp increase in industrial waste generated during the peak rawhide processing season.
He said the CETP currently has the capacity to treat between 14,000 and 18,000 cubic metres of waste per day under normal conditions, while demand during Eid-ul-Azha could surge to nearly 45,000 cubic metres.
“As production increases during Eid, waste management capacity must also be expanded in line with industrial activity,” he said, adding that the government is giving priority to environmental protection.
The minister also said financially and technically capable tannery owners would be encouraged to establish their own Effluent Treatment Plants (ETPs) to reduce pressure on the central facility and strengthen environmental compliance.
“If necessary, the government will provide policy and technical support,” he added.
Earlier, the minister held a meeting with tannery owners at the BSCIC office in Savar.
