Friday, June 12, 2009

Banned tanning usages may hit leather exports --Financial Express dated 28th August 2000

Banned tanning usages may hit leather exports
VM Khaleelur Rahman
CHENNAI, JUNE 27: A documentary film shown on TV in Switzerland recently depicting `miserable conditions' and the improper use of chemicals, banned in Europe, in a tannery in a village in Andhra Pradesh has `frightened and shocked'' the people there.
After seeing the programme, some stores arranged tests of several leather goods (clothing and shoes) and found in a part of them the forbidden chemicals. A lot of suppliers had to take back the goods from the show rooms. The Swiss government is also expected to arrange for suitable tests of the imported goods. They want only PCP, AZO and CHROME-VI free goods.
A leading shoe manufacturer whose name is well-known the world-over in leather and shoe circles has faxed an SOS to his suppliers in India saying that ``for being sure that we have clean uppers and shoes from India it is not enough that we have your certificate that the goods don't contain PCP and AZO dyestuffs. We are requesting for a test report to each consignment''.
Always buyers in Germany andSwitzerland have been ``allergic'' to the use of dyes like PCP and AZO because it is feared that they have cancer causing ingredients in them. But surprisingly enough there has been no such protest against them in other countries.
It was Germany which created this problem first some 10 years ago causing much hardship to exporters with huge orders, but somehow it was solved and tanners started using only those chemicals and dyes approved by their overseas customers. At that time some people even thought that it was only their ``ruse'' for selling their own chemicals and dyes to their Indian suppliers of leather and leather products.
There is also a warning in the above referred fax message as follows: ``If some shoes should be delivered to a customer of ours and he found out that the shoes are not PCP, AZO or CHROME-VI free, we have to take the goods back and have to destroy it. In such a case, we will debit all of the costs together with the consequences to you.''
This sudden development is causingworry to exporters of leather and leather products to Switzerland and Germany. Although they do not use any harmful items, getting a test report for every consignment is considered to be time- consuming, complicated and also expensive.
But they believe that their genuine explanation regarding this will be convincing and acceptable to their traditional and knowledgeable customers in these countries and they will be satisfied with the certificate they issue to this effect.
A show manufacturer suggests that the Council for Leather Exports should look into this TV programme episode and issue a clarification on it portraying the real picture of the tanning and leather products industry here so that the wrong impression created in the minds of the Swiss people are removed and they continue to buy our products confidently without any hesitation as hithertofore.
The continuing dull leather market worries tanners. The slow tendency is for all items - hides, goat and sheep skins. Inspite of best efforts, tannersfind it extremely difficult to sell their goods. The usual hubhub of the local leather market is conspicuous by its absence.
Some small business was done in tanned goal skins at around the following prices: Garment suede Rs 33, all suede Rs 30/50, shoe suede Rs 27, A lining Rs 19, A/B lining Rs 17, C lining Rs 15/-, D lining Rs. 12, Rejection T Rs 9, Skiver Rs 7-per SF. Local Rejection, langda and paper were sold at around Rs 110/85/130 per kg respectively. A tanner sold ``as it is'' lot at Rs 90 per piece. Raw goat skins are sold at around Rs 50 in Chennai, Hyderabad, Delhi, Mumbai etc. whereas in places like Miraj, Modachur, Pollachi etc where the quality and pelt is always better the prices are at around Rs 75. Sheep nappa, particularly in good quality, sold at around lot Rs 38, E/F/SF/- and Rejection Rs 17 per SF but the business done was small. Goat garment suede leathers A/B/C fetched at around Rs 50 per SF. Only a few garment manufacturers of places like Chennai, Delhi and Bangalore showed limitedinterest because of reduced works in factories due to lack of big export orders.
The POLO garments which fetched about US $80 a year ago are now paid only about US $55 and manufacturers find it very difficult to operate at this ridiculously low price. As regards shoe industry, position is far better. Shoe manufacturers bought wetblue goat skins 3/4 of 1/9 grades at around Rs 38 per SF. They continue to evince interest for TC buff light 5/6 grades of size 8/14 at around Rs 25 and size 4/8 at around Rs 30. Some bought sheep cabretta at around Rs 70 and goat crust LDT 3/6 at around Rs 23 and 6/9 at around Rs 25.
(The author is an leather market analyst)

1 comment:

  1. Nice post...I look forward to reading more, and getting a more active part in the talks here, whilst picking up some knowledge as well..

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