The exports of crust leather from Bangladesh experienced a negative growth rate of 25.46 per cent during the July–September period of fiscal year 2019-20 as compared to the fiscal year of 2018–19.

According to the Export Promotion Bureau (EPB), the sector registered a negative growth rate of 5.06 per cent, resulting in earnings of US$ 254.39 million during the July-September period of FY 2019–20. This figure was US$ 267.94 million during the same period of the FY 2018–19. Most of the tanneries that have been shifted to the Savar Tannery Complex from Hazaribagh have not fully functional yet which is one of the prime reasons behind the negative growth.

The renowned leather producers of Bangladesh are moving towards artificial and non-leather products to address the global demand as leather prices went up in the world market since 2013. Bangladesh generally exports leather products to countries such as South Korea, China, and the European Union, among others. But they have started using artificial leather products, which are more affordable and lead them to import fewer products from Bangladesh.

Around 155 factories have been shifted to Savar. Of these, 125 factories are running and 25 tanneries have fully started their operations but are processing only crust leather. This sector is not getting the advantage of the Central Effluent Treatment Plant (CETP) and is struggling hard to achieve global standards in terms of compliance. Only leather footwear registered a negative growth rate of 9.28 per cent, resulting in earnings of US$ 159.23 million.