Written by The Banking Post
Chattogram’s once-thriving tannery industry is steadily fading, with most factories shutting down over the years amid financial constraints, environmental challenges and what industry insiders describe as policy failures and regulatory hurdles.
The port city, which once had around 30 tanneries before independence and 22 even after independence, now has only two operational units remaining. Industry leaders say a lack of investment, inadequate government support and obstacles created by regulatory agencies have accelerated the sector’s decline.
“Most of the businessmen here have inherited the trade from their ancestors. They have been doing business since the Pakistan period. Even after independence, there were 22 tanneries in Chattogram, but the leather industry is suffering from a deep crisis today due to financial constraints, environmental problems and the wrong policies of the previous government,” said Md Muslim Uddin, president of the Greater Chattogram Raw Leather Traders Cooperative Association.
Most tanneries were concentrated in the Antura Depot and Jalalabad areas, while only one major player—Reef Leather Limited—continues operations from the Kalurghat Industrial Area. Established in 1991, Reef Leather was also the last major investment in the sector, with no new tannery set up since then.
“The leather and tannery sector is very important for Bangladesh as there is abundant rawhide. During Eid-ul-Azha alone, Chattogram supplies more than 700,000 pieces of rawhide every year. But unfortunately, most tanneries in Chattogram have shut down due to owners’ negligence and a lack of investment,” said Muklesur Rahman, director of Reef Leather Industry Limited.
Industry leaders believe establishing a dedicated tannery zone could help revive the sector. They argue that modern facilities, improved environmental compliance and better infrastructure could attract new investment and allow businesses to capitalise on the region’s large rawhide supply.
The government is planning to establish a dedicated tannery zone on 300 acres in Mirersarai Economic Zone, alongside similar facilities planned in Savar and Rajshahi.
“Chattogram supplies 40 to 50 percent of total rawhide demand. If a special zone for tanneries is set up, the sector will be profitable,” said Chattogram Chamber President Amirul Haque.
