Tanneries idle due to gas crisis: Country’s leather industry faces losses of crores of taka

❐ Staff Reporter

Raw leather processing is being severely disrupted in the leather industry city of Savar due to a severe gas shortage. Due to insufficient gas supply, it is not possible to keep most tanneries’ machines running.

Tannery owners have written to the Ministry of Industries for a solution to the situation. However, as no effective initiative has been taken yet, there has been extreme uncertainty about the timely delivery of products abroad, in addition to financial losses. This is also increasing the risk of export orders being canceled.

It has been observed in various tanneries of Savar Leather City that raw hides that have been stripped of their fur are being stored covered with polythene. Due to gas shortage, they are not being processed completely in the prescribed process. A similar situation prevails in almost all tanneries.

Due to disruptions in gas supply, owners are forced to shut down production activities most of the time. In some places, work is being carried out on a limited scale using traditional methods instead of modern equipment. In addition to disrupting production, workers are also concerned about receiving regular salaries due to reduced working hours.

The owners alleged that despite informing the Ministry of Industries several times, there has been no visible progress in resolving the crisis. They said that several export orders have also been canceled.

A tannery worker said that there has been a severe gas crisis for about a month. As a result, machines have to be shut down most of the time, and the factory’s production has practically come to a standstill. This is not only causing financial losses to the company, but also disrupting the continuity of the workers’ work.

“If the current crisis continues, foreign buyers may move to other markets. Once buyers are lost, it will be very difficult to bring them back,” said Shakhawat Ullah, senior vice president of the Tanners’ Association.

He said that although gas is needed at every stage of production, the operations are currently almost completely shut down. Therefore, he called for the normalization of gas supply on an urgent basis to sustain the industry.

Industries Secretary Abdun Nasser Khan said that the issue of gas supply is under the jurisdiction of the Energy Ministry. However, regular communication and coordination with the concerned ministries is continuing to resolve the crisis.

He said that the Ministry of Industries has assured all necessary cooperation.

Meanwhile, experts believe that if uninterrupted fuel supply to the tannery industry cannot be ensured, the country’s exports of leather and leather products will face major losses.

According to them, it is important to adopt a long-term energy plan along with rapid inter-ministerial coordination to address the crisis.

Afzal Hossain, a former auditor of the Leather Working Group, said that if energy security is ensured, foreign investment, domestic production and the overall economy will move forward positively.

He believes that rapid and effective coordination between the relevant ministries is needed to deal with the current situation.

Meanwhile, industry stakeholders have called for emphasis on the use of alternative energy, including solar power, to ensure long-term energy security in the Savar Leather Industrial City.