INTEREST FREE WINDOW EXPECTED SOON IN EXISTING BANKS IN INDIA

V.M. Khaleelur Rahman

Indian Centre for Islamic Finance (ICIF) has issued a Press Release welcoming the Reserve Bank of India Committee recommendation on interest free window in existing banks.

The Press Release issued by Mr. Unais Aneesudheen, Operations Manager, ICIF, says that on 16^th September 2015 RBI Committee headed by Mr. Deepak Mohanty invited Mr. H. Abdur Raqeeb, General Secretary, ICIF, to interact with the Committee at RBI headquarters at Chennai along with other stakeholders and ICIF submitted a detailed memorandum to the Committee which included the introduction of interest free windows in the banking for the financial inclusion of the minorities and the marginalized which was accepted by the Committee.

The ICIF report had highlighted that the central concept of interest free banking and finance is justice and it will be achieved mainly through the sharing of risk without involving interest.

The ICIF is hopeful that the Reserve Bank of India and Government will accept the recommendation and open the interest free window in the banking sector very soon. It feels that it will be helpful to a large section of the society, which is keeping itself away from the existing conventional interest based banking system due to their religious faith and belief, in accessing financial products and services.

Chennai Leather Market - December 2015

CHENNAI LEATHER MARKET

V.M.Khaleelur Rahman

Activities in Chennai leather market are very slow due to unprecedented lashing heavy rains and slowed down overseas interest. Only few exporters of leather and leather products are in the market covering their urgent requirements to complete their outstanding contracts. Prices payable are further reduced and small tanners are in a tight corner. However tanners’ quotations are at around the following prices:

E.I. Tanned Goat Skins

4/6 sq. ft. Run Rs.85, Fifth Rs.75, IF Rs.65 and LIF Rs.55

4/6 sq. ft. Lining Rs.45

5/8 sq. ft. Run Rs.90, Fifth Rs.80, IF Rs.70 and LIF Rs.60

5/8 sq. ft. Lining A & B Rs.50

4/6 sq. ft. Run & Fifth combined Rs.60 and IF & LIF combined Rs.55

4/6 sq. ft. All Suede Rs.50

5/8 sq. ft. All Suede Rs.55

Even in raw skin centres throughout the country market continued to be slow and activities lacklustre. It is difficult to quote the prevailing prices as they differed from place to place depending on quality and selection. Generally speaking the prices of raw goat skins are ruling at around Rs.140 and 200/ per piece. But in centres like Salem and Modachur in Tamil Nadu prices are much higher. Some top class tanners buy only high grade skins paying higher prices.

EXPORT CONTRACTS

Overseas business also continues to be difficult in bulk quantities. Some goat upper and lining contracts are taking place at around US$2.50 and 1.60 per sq. ft. respectively. All Suede is also slowly on the move. However some leading exporters seem to have sold their different high quality cabratta, upper and lining articles at much higher prices.

Exporters are quoting at around the following prices:

                                                         S/C OR F/C GOAT LEATHERS

Material	Size/sq. ft.	Substance	Selection	Price US$ per sq. ft. C&F
Goat upper leather	4/7	0.6/0.8 mm	ABC	2.60
Goat milled leather	4/7	0.6/0.8 mm	D/E G/H	1.75 1.65
Goat suede leather	4/7	0.6/0.8 mm	All Suede	2.40
Goat lining leather	3/5 or 4/7	0.5/0.7 mm	TR-1 TR-2 TR-3	1.70 1.60 1.50
	6/9	0.6/0.8 mm	TR-1/2/3	1.70

                                             

                                                     F/C SHEEP LEATHERS

Material	Size/sq.ft.	Substance	Selection	Price US$ per sq. ft. C&F
Sheep upper leather	4/7	0.6/0.8 mm	ABC	2.70
Sheep Upper leather	6/9	0.8/1.00 mm	ABC	2.80
Sheep lining leather	4/7	0.5/0.7 mm	TR-1/2/3	1.60
Sheep lining leather	5/8	0.6/0.8 mm	TR-1/2/3	1.70

As far as business with Japan is concerned, activities are very slow. Only patchy business is taking place mostly in F/C sheep Rejection at around JY 140 per sq. ft. There seems to be no buyers for higher selections. However one or two business in small quantities has taken place in S/C sheep upper leathers. Exporters are endeavouring their best to market their goods.  

Quotations of exporters are as follows:

S/C sheep upper leather

6/9 sq. ft. ABC JY 265 per sq. ft. C&F

5/7 sq. ft. ABC JY 250 per sq. ft. C&F

4/7 sq. ft. ABC JY 240 per sq. ft. C&F

F/C sheep suede leather

All Suede 6/8 sq. ft. JY240, 5 sq. ft. and up JY230 and 4/7 sq. ft. JY225 per sq. ft. C&F

F/C sheep lining leather

TR-Lining 4/7 sq. ft. JY140 and 5/8 sq. ft. JY150 per sq. ft. C&F

The decline in the growth and export of leather and leather products during the past more than 6 months is worrying everyone in the industry.

(Writer’s e-mail id: vmk1234@yahoo.com)