The leather sector is Bangladesh’s second-largest export industry, vital for export diversification and economic development, but faces challenges like pollution and poor supply chain coordination. Despite having potential from low-cost labor and raw materials, the sector has seen recent export declines in some areas, though footwear exports have grown significantly to certain markets like the US. Addressing issues like environmental compliance, infrastructure, and waste management is crucial for future growth and achieving its export potential, which the government and international partners are working to support, as outlined in posts from BIDA, the German Embassy Dhaka, and the Asian Development Bank.

Overview and importance:
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1-Second-largest export sector:
After ready-made garments, the leather sector is a major contributor to Bangladesh’s export earnings.

2-Government priority:
The government has declared it a priority sector for export diversification.

3-Potential: The industry has significant potential due to a large, low-cost labor force and abundant raw materials, with high value-addition potential in higher-end products.

4-Exports:
While the sector has seen recent overall export declines, footwear exports, especially to the US, have shown substantial growth, with the government aiming for $5 billion in annual exports within the next five years.

Challenges:
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1-Environmental issues:
The industry faces significant challenges with pollution from chemical use in tanneries, affecting water, air, and soil quality and posing health risks to surrounding communities.

2-Supply chain and coordination:
Poor coordination between raw material suppliers (especially during seasonal collections like Eid-ul-Adha) and tanners leads to wastage due to a lack of proper preservation, storage, and transport.

3-Infrastructure and compliance:
There is a need for investment in modern infrastructure, compliance with environmental and labor standards, and better solid waste management.
Labor concerns: Issues like child labor have been reported in the past.

Opportunities for growth:
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1-Focus on higher-value products:
There is potential for growth by moving up the value chain to produce higher-value goods and accessories.

2-Sustainable and ethical production:
The global demand for sustainable and ethically produced leather products presents a major opportunity for the sector to attract premium buyers.

3-Investment in technology and skills:
Investing in new technologies and upskilling the workforce is crucial for improving compliance and productivity.

4-Improved waste management:
Properly managing solid waste can create new revenue streams, as many by-products have