Friday, June 12, 2009

Leather footwear sector gears up for quality conscious markets in US, UK ....Financial Express dated May 1, 2000

Leather footwear sector gears up for quality conscious markets in US, UK

Indian leather footwear industry has developed well and is slowly moving towards exporting shoes as per the specification of the quality conscious customers in advanced countries such as US, UK, Italy etc. According to DGCI&S Calcutta, footwear exports which were to the tune of $232.19 million during the period April-Dec 1998 has increased by 5.44 per cent to $244.81 million during the same period in 1999. This upward tendency is certain to continue in the months to come.

Every reputed shoe factory has sufficient orders for exports which is not the case in other sectors like leather garments which suffered a downfall of 20.75 per cent during the same April-December '99 period.

Market: Prices to E.I tanned goat skins remain almost unchanged with sales taking place at around Rs 31.00, Rs 28.00 and Rs 25.00 per sq.ft for garment suede, all suede and shoe suede respectively. Goat linings A/B/C are available at Rs 18/16/14 while Rejection and Langda are ruling at Rs 130.00 and Rs 105.00 per kg. respectively. Although good demand exists for wetblue cow hides higher selections at prices Rs. 57 to Rs 59 per sq. ft. for I/II, Rs. 47 to Rs 48 for III and Rs. 37 to Rs 38 for IV, lower selections are somewhat slow in movements. The manufacturers of shoes continue to buy mostly standard tannage hides free from hazardous chemicals like Azo, Pcp etc.

There is good demand for sheep nappa lot in the domestic market at around Rs 43.00 per sq. ft. for good quality and sheep Cabretta is sold upto $2.00 per sq. ft. CIF for export. There is also demand for goat lining leathers at varying prices depending on the quality and selection. As a whole market moves upwards particularly in raw materials and it has become difficult for tanners to operate. Many leading exporters are preparing to participate in the Bologna leather fair to be held from May 3 to 5, 2000.

(The author is a Chennai-based leather industry analyst) Courtesy: Financial Express

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