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Leather exports may come to a halt after 2004, says study

Tanneries, manufacturing units lack ISO certification

M ABDUR RAHIM
Bangladeshi leather and leather product exports may come to a halt as none of the tanneries and manufacturing units has ISO certification to be required under WTO environmental provisions after 2004, a study warned recently.
The World Trade Organisation (WTO) has already set up international standards, ISO 9000 and ISO 14000, for leather and leather products under the policy of free market economy agreed by the world community.
The two standards are likely to be effective from 2005, said the study conducted by the Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association (BFLLFEA) and the Bangladesh Tanners Association (BTA).
The WTO provisions make it mandatory for exporters to have effluent treatment plant in their
factory to reduce pollution from leather wastage, it said.
Developed countries, major importers and consumers of footwear and leather goods are concerned over both process and product-oriented environmental hazards. They expect that exporters fulfil environmental guidelines set by WTO.
The two associations in their study feared that Bangladesh might lose international market as the leather processing and leather products manufacturing companies in the country are yet to have ISO certification.
Out of the total 206 tanneries of Bangladesh, 186 are located in Hazaribagh area in Dhaka where 84 per cent of the total supply of hides and skins are processed in a congested area of only 70 acres of land.
The unplanned tanneries in Hazaribagh area do not have supporting infrastructure facilities. No
tannery in the area has arrangements of effluent treatment.
They discharge about 12,500 cubic metres untreated water daily during peak production period following Eid ul Azha and 5,000 cubic metres during lean period, the study said.
Talking to The Daily Star, BFLLFEA Chairman Rezaul Karim Ansari said setting up of an effluent treatment plant individually is not economically viable as they are highly expensive. A group of enterprises can install a plant to use on shared basis, he suggested.
He said government should assist the entrepreneurs to set up such expensive plants.
About the fear of losing international market of leather and leather products, he said the government and donors should come forward to rescue the sector, as the country's whole economy would be affected by it.
Leather and leather goods
export is one of Bangladesh's key export earning sectors. The country earned $290 million in 20002001 by exporting leather and leather goods.
Chairman of Bangladesh Tanners Association Harun Chowdhury said they are willing to set up effluent treatment plant but they do not have enough funds required for it.
Lack of adequate space in Hazaribagh is another impediment in setting up treatment plant there, he added.
In this regard he mentioned the government is yet to decide on the proposed relocation of Hazaribagh tanneries to Savar with integrated effluent treatment plant.
"We are willing to shift our units to Savar. If the government provides us land and fund, common treament plant can be set up which would solve the problems regarding WTO environmental requirements," he said.