SOUTH ASIA NEEDS A REGIONAL LEATHER ASSOCIATION : MR. M. RAFEEQUE AHMED

SOUTH ASIA NEEDS A REGIONAL ASSOCIATION: CLE CHAIRMAN MR. RAFEEQUE

V.M. Khaleelur Rahman

A two day event of the South Asian countries particularly, India, Pakistan, Bangladesh and Sri Lanka was held during this month in Chennai on “strengthening the competitiveness of South Asia in leather and leather products” in which leading policy makers, industrialists and others from these countries participated and discussed strategies to combat the raw material shortage and price crunch due to recession in European markets and create a regional brand image. It was organized to highlight a UNCTAD (United Nations Conference on Trade and Development) study as part of a project on development oriented integration in South Asia.

Mr. Rajeev Kher, additional secretary, minister of commerce, said in his inaugural address that it is unfortunate that the leather industry is not adequately integrated in its production network as any other sector in the South Asian region and that a framework for regional organization that would foster integration is the need of the hour.

Mr. M. Rafeeque Ahmed, Chairman, Council for Leather Exports, said that South Asian countries particularly India, Pakistan and Bangladesh are not able to face the competitions abroad due to lack of co-ordination within the region and that customers abroad use this situation to play off one manufacturer against the other to cut down prices to their own advantage and suggested that South Asian countries should have a regional association to integrate industry and identify areas for co-operation.  He also said that movement of specific raw materials and components from one country to another will help grow leather product exports from the region.

The industry representatives were for having a regional association for the benefit of the leather industry in South Asia. Mr. S.M. Naseem, Chairman, Pakistan Tanners Association and Mr. Syed Nasim Manzur, Managing Director, Apex Adelchi Footwear Ltd. Bangladesh were among the important exporters who spoke on the occasion. The general consensus was for free movement of raw materials within South Asia for integrated growth of the industry and collaboration. Surprisingly the industry is by and large unaware of even this important event. 

One feels that the CLE Chairman has expressed his views very frankly without any reservation. It is a fact known to everyone in the industry that there is more cut throat competition among exporters now  in all fields of activity particularly in buying and selling and overseas customers are taking advantage of this situation in covering their requirements at their prices which many a time are unworkable to tanners and exporters here. When enquired about it a tanner pointed out that “irrational approach” is the main cause for the problems many tanners are facing.

After detailed discussions the consultation meet decided to form a regional industry association called Leather Industries Association of South Asia (LIASA) to be headed by Mr. M. Rafeeque Ahmed, Chairman, Council for Leather Exports, India. It also decided to form a working committee of 8 members for exchange of ideas and identification of areas of co-operation.

(VMK in Indian Leather, September 2012)