"We need some Tk 4,500 crore to complete shifting from Hazaribagh to Savar and we ourselves can manage Tk 2,500 crore for the process. Unless the government provides the rest amount, the relocation would not be possible," Tipu Sultan, president of the Bangladesh Finished Leather and Leather Goods and Footwear Exporters Association (BFLLFEA), told a seminar in Dhaka yesterday.

The seminar on Leather and Leather Goods: An Emerging Sector was organised by the Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) at the Federation Bhaban.

The BFLLFEA chief lamented that the government has agreed to provide only Tk 250 crore as compensation, which is very insignificant.

Suggesting a soft loan at three percent interest, he said, "If the government provides necessary support to the sector, it would be the highest export-oriented sector after readymade garments (RMG) with an export earning capacity of Tk 12,000 crore per year."

He also expressed his hope that with such a support, the sector would create an opportunity for employment of four lakh people.

Presently, according to him, the country fetches Tk 2,800 crore from exports of leather and leather goods per annum.

Addressing the function, Mohammad Abdul Mazid, member of Planning Commission (Infrastructure Division), said although the RMG sector is the highest foreign currency earner, the value addition by the leather sector is higher than the RMG.

"Proper technical know-how, adequate infrastructure and government support are needed for development of the emerging leather sector," he observed.

He urged the industry stakeholders and FBCCI to come up with an 'integrated strategy' for leather sector development.

A demand for an SME (small and medium enterprise) treatment and for the same facilities offered to the SMEs was also raised at the seminar.

The speakers also underscored the need for short-term financing, technical training, modern machinery, design and marketing strategy for the leather sector.

Presiding over the seminar, FBCCI Vice President Dewan Sultan Ahmed said the leather industry is yet to flourish to its desired extent.

"We produce about 86 million square feet of fine quality leather, but the export earning from this sector is only slightly over US$ 257 million, whereas Vietnam that produces almost the same quantity of leather has an export earning of $ 2 billion," he said.

"This is an indicator to a scope of expansion of our leather industry through conversion of leather to leather goods," he pointed out.

Ghulam Hossain, coordinator of Business Promotion Council, a project under the Ministry of Commerce, and a joint secretary, presented the keynote paper at the seminar.