Inspired by a better performance last fiscal year, Bangladesh’s leather industry has begun the new year with 8.80 per cent growth from its monthly strategic target in July.
Industry experts foresee an even brighter export turnover for the intermediary leather by the year-end.
Export Promotion Bureau data shows US$ 29.30 million crust and finished leather exports in the first month of the new financial year against a $ 26.93 million target. The state-run export promotion body also revealed that the earnings of finished leather rose to $ 29.30 million in July from $ 24.01 million earnings in the same month a year ago, registering a 22.03 per cent growth. The country’s finished leather industry fetched
$297.83 million from exports in FY 2010-11 against the target of $293.94 million, recording a 1.32 per cent growth.
Md. Sahin Ahmed, chairman of Bangladesh Tanners Association, told The Independent: Tanners expect the growth to continue in future after witnessing ups and downs in the leather export earnings during the past few years.”
Ahmed is hopeful of achieving the target of $ 327.61 million this fiscal (2011-12), availing the advantage of Chaina+1 strategy, which pushing the European and American finished leather importers to keep their eyes on Bangladesh as an alternative source, as they found here quality product at a cheaper price than China.
To avail of such advantage, new investment and business expansion is needed, Ahmed said and sought immediate shifting of industries to Savar from Hazaribagh.
“We don’t make any new investment in our industry due to the uncertainty of such shifting,” he said.
Recently the government has decided to provide 15 per cent cash incentive to the leather product exporters, he said, adding that the tanners were allowed to get 3.5 per cent cash incentives for crust leather and 5 per cent for finished leather.
“We can inflate the export target at a large scale if we get positive support of the government including 15 per cent cash incentive, duty free import of chemicals and withdrawal of 10 per cent tax on the imported capital machineries,” he added.
http://www.theindependentbd.com/business/others/65122-leather-exporters-upbeat-on-target.html
Industry experts foresee an even brighter export turnover for the intermediary leather by the year-end.
Export Promotion Bureau data shows US$ 29.30 million crust and finished leather exports in the first month of the new financial year against a $ 26.93 million target. The state-run export promotion body also revealed that the earnings of finished leather rose to $ 29.30 million in July from $ 24.01 million earnings in the same month a year ago, registering a 22.03 per cent growth. The country’s finished leather industry fetched
$297.83 million from exports in FY 2010-11 against the target of $293.94 million, recording a 1.32 per cent growth.
Md. Sahin Ahmed, chairman of Bangladesh Tanners Association, told The Independent: Tanners expect the growth to continue in future after witnessing ups and downs in the leather export earnings during the past few years.”
Ahmed is hopeful of achieving the target of $ 327.61 million this fiscal (2011-12), availing the advantage of Chaina+1 strategy, which pushing the European and American finished leather importers to keep their eyes on Bangladesh as an alternative source, as they found here quality product at a cheaper price than China.
To avail of such advantage, new investment and business expansion is needed, Ahmed said and sought immediate shifting of industries to Savar from Hazaribagh.
“We don’t make any new investment in our industry due to the uncertainty of such shifting,” he said.
Recently the government has decided to provide 15 per cent cash incentive to the leather product exporters, he said, adding that the tanners were allowed to get 3.5 per cent cash incentives for crust leather and 5 per cent for finished leather.
“We can inflate the export target at a large scale if we get positive support of the government including 15 per cent cash incentive, duty free import of chemicals and withdrawal of 10 per cent tax on the imported capital machineries,” he added.
http://www.theindependentbd.com/business/others/65122-leather-exporters-upbeat-on-target.html
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