INDIAN LEATHER INDUSTRY IN THE NEW YEAR 2011

INDIAN LEATHER INDUSTRY IN THE NEW YEAR 2011

V.M. Khaleelur Rahman

The latest data available now for the export of leather and leather products made during the period April –November 2010 i.e. US$ 2244.35  million as against US$ 1916.91 million in the corresponding period last year shows that there is a positive growth of 17.08% and Indian leather industry is marching forward leaving the recession behind. The following chart is self-explanatory:

                                                                                                            (Value in million US$)

Product	April-Nov 2009	April-Nov 2010	% Variation
Finished Leather	381.05	485.30	27.36
Leather Footwear	672.19	822.98	22.43
Footwear Components	155.99	156.53	0.35
Leather Garments	245.70	263.59	7.28
Leather Goods	424.54	473.14	11.45
Saddlery & Harness	26.73	30.48	14.01
Non-Leather Footwear	10.72	12.34	15.15
Total	1916.91	2244.35	17.08

(Courtesy: Council for Leather Exports)

As usual the export increase has been highest in the product Finished Leather for which there is continuous demand from different sources but exporters here consider their prices unworkable as raw materials, chemicals, labour charges have all become costly now. Overseas customers show interest for goat and sheep upper, suede and lining leathers at different prices depending on the quality and selection.

It is reliably learnt that S/C goat upper, suede and lining leathers TR-1/2/3 are sold at around US$ 2.00, 1.80 and 1.10/1.00/0.90 per sq.ft. respectively whereas Sheep All Suedes and LDT have been sold at around US$ 2.50 and 1.90 per sq.ft. respectively. Due to new year holidays export activities were restricted but local demand existed very much during recent weeks. But detailed information is not available at the time of writing this article. However the fact is that almost all the items of leather are on the move in the market. There is shortage of tanned skins in the Chennai market. Even in Erode there is good demand for wet blue cow hides and higher selections are sold at around Rs.80/- per sq.ft. Under this situation even those tanners and products manufacturers who have not been importing hides and skins from abroad are thinking of imports. Tamil Nadu Leather Tanners Exporters & Importers Association (TALTEIA), Chennai has taken a decision and announced that it would lead a delegation for 10 days from 22^nd February to 3^rd March 2011 to Egypt which is a resourceful country for raw material and attend the leather fair to be conducted in Ethiopia for an on the spot study of the prevailing situation in the leather market.

IILF 2011 CHENNAI

The India International Leather Fair (IILF) 2011 to be held from 31^st January to 3^rd February 2011 at the Chennai Trade Centre in Chennai has received a very good response from home and abroad. All sections of the leather trade and industry look to it with interest and hope that it will provide a good opportunity for all concerned to assess the present trends in the world leather industry and conclude considerable volume of business as many leading manufacturers of machinery, chemicals, footwear etc. and suppliers of raw materials are participating and exhibiting their products in it. The co-sponsor of the fair, Council for Leather Exports with its newly elected Chairman Mr. M. Rafeeque Ahmed and newly elected Vice-Chairman Mr. Rajendra Kumar is expected to make this event more and more glamorous and successful this year.

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