CHENNAI LEATHER MARKET - JANUARY 2017

CHANNAI LEATHER MARKET

V.M. Khaleelur Rahman

 Chennai leather market is yet to recover from the unfavourable impact of demonetisation of Rs.500 and Rs.1000 currency notes. Local activities are very slow in all items of leather. Tanners and exporters find it difficult to carry on their business. Tannery and factory workers are running to ATMs after working hours to withdraw cash. In some shoe factories like Farida Shoes tokens of provision stores worth Rs.1000 and Rs.500 are given to employees to enable them to get the necessary provisions like rice, wheat flour etc. Production has been reduced in many tanneries. Even shoe shops in the popular Periamet area are not getting enough business. It is the case elsewhere also. Cash crunch is felt everywhere. Suppliers of raw hides and skins, chemicals, shoe materials etc. are not able to get their payments on time.

E.I. Tanned Goat Skins are sold at around the following prices:

Grain selection 4/6 sq. ft. Run and Fifth combined Rs.58

5/8 sq. ft. Run Rs.72, 5/8 sq. ft. Suede Rs.50, 4/6 sq. ft. Suede Rs.46, 3/4 sq. ft. Suede Rs.35

3/4 sq. ft. Heel Grip Rs.30, 5/8 sq. ft. Lining Rs.47, 4/7 sq. ft. Lining Rs.41, Flesh Mesh RS.33

Grain Mesh Rs.25, Rejection Rs.17, Langda Rs.125 per kg., K/Langda Rs.90 per kg.

Kids –Lot Rs.325, Kids – Lower Rs.225,

As far as overseas business is concerned, due to Christmas and New Year holidays, market is very slow. Quotations of exporters are as follows:

                                      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/DE	2.10/1.60
Goat milled leather	4/7	0.6/0.8 mm	TR-1	1.70
Goat suede leather	4/7 5/8	0.6/0.8 mm 0.6/0.8 mm	All Suede	2.00 2.10
Goat lining leather	4/7	0.5/0.7 mm	TR-1/TR-2/TR-3	1.50/1.40/1.30
	6/9	0.6/0.8 mm	TR-1/2/3 Combined	1.60

                                                       

                                   F/C SHEEP LEATHERS

Material	Size/sq.ft.	Substance	Selection	Price US$ per sq. ft. C&F
Sheep Cabretta leather	4/7	0.6/0.8 mm	ABC	2.00
Sheep Cabretta leather	6/9	0.8/1.00 mm	ABC	2.10
Sheep lining leather	4/7 5/9	0.5/0.7 mm 0.6/0.8 mm	TR-1 TR-1	1.50 1.60

SHOE INDUSTRY

Shoe factories in places like Chennai and Ambur are working with reduced productions. It is expected in the trade circle that things will change for the better during this New Year 2017. Shoe manufacturers feel that the Council for Leather Exports should find new marketing strategies and help Indian leather and leather products industry grow well in production and export. They also say there is an urgent need for them to concentrate more and more in domestic markets.

It is noteworthy that a country like Portugal has achieved about 40% growth in its footwear exports during the past five years. Although it keeps its exports going to its main 20 big European markets, its bigger growth rates have been from non-traditional markets in which it worked vigorously.