Chennai Leather Market - August 2017

CHENNAI LEATHER MARKET

V. M. Khaleelur Rahman

Activities in the Chennai leather market are very slow which cannot be properly described in words.  Some of my tanner friends said that they were not able to sell anything since more than a month. The newly introduced GST (Goods and Services Tax) is also responsible for the present inactivity in the market. A lot of confusion is prevailing in the market. Taking this into consideration the Council for Leather Exports has decided to organise awareness seminars on GST “all over India” to apprise and educate the members about it in detail. Chartered Accountants and Financial Analysts are to make presentations during the seminars and clarify doubts of members about GST.

GST has five rates of taxes for Goods and Services. They are subject to Nil, 5%, 12%, 18% or 28% depending on the type of goods or services. Recently, gold and raw uncut diamonds have been classified under 3% and 0.25% GST. Export of goods and services are classified as ‘Zero Rated’.

	GST rates
Raw and Tanned Hides and Skins	5%
Finished Leather	12%
Leather Goods and Garments	28%
Footwear up to Retail Selling Price Rs.500 per piece	5%
Other Footwear and Components	18%
Wattle Extract, Quebracho Extract	5%
Other tanning Chemicals	18%,28%
Finishers, Polishes etc	28%
Job Work charges for processing of leather	5%
Other Job Work charges	18%
Effluent Treatment charges	18%

The above rates indicate the total of CGST and SGST rates. The division of the rates would be equal.

As stated above the Chennai leather market is very dull. However some tanners have sold their E.I. Tanned Goat Skins, Better Lining 5/7 sq. ft. at around Rs.52 and 4/6 sq. ft. at around 42 per sq. ft. Many tanners are having huge quantities of this item unsold as exporters of leather and leather products are not in the market for purchases.

Quotations of tanners are as follows:

E.I. Tanned Goat Skins

Grain selection: 5/8 sq. ft. Run/V Rs.90/95, V Rs.70/75, IF Rs.60/65, LIF Rs.50/55

Suede Selection: 5/8 sq. ft. Rs.45/46, 4/6 sq. ft. Rs.40/42

Lining Selection: 5/8 sq. ft. Rs.40/42, 4/6 sq. ft. Rs.36/37

Better Mesh: 5/8 sq. ft. Rs.30/32

Rejection Rs.14/16, Langda Rs.7/8 (All prices are per sq.ft.)

As far as raw goat skins are concerned, ruling prices are at around the following prices:

Miraj Rs.200, Ahmednagar Rs.150, Cadappa Rs.100, Hyderabad Rs.70 per piece

EXPORT CONTRACTS

As regards export orders for leather, there is no report of any fresh big contract. Some patchy business may have taken place. Generally speaking overseas customers are almost keeping quiet abroad due to holidays and other reasons. Leather exporters are endeavouring their best to have orders from as many sources as possible. The hard fact is that leather industry is passing through a very difficult period perhaps never witnessed before.

OFFERS OF EXPORTERS ARE AS FOLLOWS:

4/6 sq. ft. All Suede JY 195, LIF Suede JY 165, Rejection Suede JY 110

6/9 sq. ft. All Suede JY 210, LIF Suede JY 175, Rejection Suede JY 125

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	2.25/1.75
Goat milled leather	4/7	0.6/0.8 mm	TR-1	1.75
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	1.70
	6/9	0.6/0.8 mm	TR-1	1.80

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	1.95
Sheep Cabretta leather	6/9	0.8/1.00 mm	ABC	2.05
Sheep lining leather	4/7 5/9	0.5/0.7 mm 0.6/0.8 mm	TR-1 TR-1	1.60 1.70

Exporters say that the government should come out with sufficient incentives to boost our growth and exports which have come down considerably.  

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

DR. APJ Abdul Kalam - Remembering him on his 2nd death anniversary on 27th July 2017

The following is the speech delivered by V. M. Khaleelur Rahman at the condolence meeting organised by Ambur Muslim Educational Society at Ambur Trade Centre on 10th August 2015:

In the name of Allah, the beneficent, the merciful

Dr. APJ Abdul Kalam was a great scientist and spiritual technocrat par excellence. We all know his contribution to the country is immense. He was a great person comparable with none. He was the people’s President when he was in office and even afterwards.

What was the secret of his popularity? 

When you speak, speak the truth, perform when you promise, discharge your trust…withhold your hands from striking and from taking that which is unlawful and bad…

Gladden the heart of a human being, feed the hungry, help the afflicted, lighten the sorrow of the sorrowful…….

Dr. Kalam practised the above noble principles of the Prophet (sal-am) in his life and became the darling of the masses.

He strongly believed that all God’s creatures are His family and he is the most beloved of God who tries to do most good to God’s creatures….

His advice to students was:

Dream, Dream, Dream,

Dreams transform into thoughts,

And thoughts result in action.

When Dr. Kalam talked of dreaming, he meant that youngsters should set themselves a goal. He believed that if one firmly believes in something and makes efforts in a focused way, then one can realize his dreams. “Dreams……….is not what we see in sleep but it is the thing which does not let us sleep”. In other words Dr. Kalam wished that youngsters should aim big and work for the country’s transformation.

Why was he so popular with the children? It is because unlike other VIPs he was accessible and made the children feel important. He was never in a hurry to finish the meeting and run away. He encouraged children to ask questions and patiently answered them.

We must be proud that we had Dr. Kalam in our midst in Ambur itself. A delegation led by Mecca Rafeeque Ahmed saheb met Dr. Abdul Kalam in New Delhi when he was the President and invited him to inaugurate the Centenary celebrations of Ambur Muslim Educational Society. He magnanimously accepted it, came to Ambur and inaugurated it on 4th September 2006. That day is green in our memory. The whole of Ambur wore a festive look and the people were so excited and happy.

Dr. A.P. J. Abdul Kalam’s inaugural address impressed everyone. His question-answer session with children was thought provoking and full of encouragement to students. He was determined to mould the minds of the students to work hard to make India a developed nation by 2020.

He strongly believed that it is education which can change ones destiny for the better and make our country a progressive and prosperous one. He considered teaching as the noblest profession.

He was a scientist and a devout Muslim. He was pious in the real sense and got inspiration from the holy Quran. It is said that he never missed his fajr namaz.

Dr. Abdul Kalam will always be remembered for his role as an excellent scientist, as a people’s president, as a good writer and orator and most importantly as a humble and genuine human being.

It is heartening to know that the AMES is thinking of starting a Centre by name Dr. Kalam Vision Foundation in his memory to encourage students to emulate his example and come up in life with flying colours.

Dr. Kalam is not with us now but his shining example will always influence us.

Thank you,

No Ban on Rs.2,000 Notes, says Haj Committee of India

NO BAN ON RS.2,000 NOTES, SAYS HAJ COMMITTEE OF INDIA

[The annual ritual is held every year to commemorate the sacrifices made by Prophet Ibrahim, his noble wife Hager and their noble son Prophet Ismael. (File photo)]

Mumbai: The Haj Committee of India Thursday rejected as fake the news which appeared in a section of the media and later went viral on social networking sites claiming that it has advised the Haj Pilgrims not to carry Rs.2000 currency notes as the newly denominated notes are banned by the Saudi government.

"The news circulating in the media regarding the ban on Rs.2000 notes is fake, not true", a Haj Committee of India official said while talking to ummid.com.

"The Haj Committee of India issues notifications and written guidelines for every big and small thing concerning the pilgrims on Haj. They include flight status, health warnings, maximum allowable baggage, how the pilgrims could get Qurbani (Adahi) coupons and other related matters.

"We would have issued a written warning if there was indeed any issue with the Rs.2000 currency notes", he said.

"There is no reason for the pilgrims to get panicked as the news circulating in the media is not true", he reiterated.

The news that the Haj Committee of India has advised all officials in the states to inform pilgrims not to carry Rs.2000 currency notes first appeared in a leading English daily. It was later also flashed by some television channels.

It is reported that Saudi officials have decided not to accept new currency notes of Rs.2000 since there were rumours that fake currency is in circulation.

About 170,000 Haj pilgrims from India will go to Makkah in Saudi Arabia to perform Haj expected to be held in first week of September.

As per the Foreign Exchange Rules, every Haj pilgrim is entitled to carry Rs.25000 Indian currency or $10000 with them.

The annual ritual is held every year to commemorate the sacrifices made by Prophet Ibrahim, his noble wife Hager and their noble son Prophet Ismael. Hajj also coincides with Eid al Adha - celebrated by Muslims across the world.

(Courtesy: www.ummid.com)

Chennai Leather Market - July 2017

                                                     CHENNAI LEATHER MARKET

                                                         V. M. Khaleelur Rahman

Limited activities are taking place in the Chennai leather market. It is learnt that some patchy business is taking place in tanned goat skins at around the following prices:

Grain selection 4/6 Run & V Rs.57, 5/8 Run Rs.75,

Lining selection 4/6 Rs.36, 5/8 Rs.42,

Suede selection 4/6 Rs.44

All per sq. ft.

Quotations are as follows:

 E.I. Tanned Goat Skins

Grain selection:

4/6 sq. ft. Run/V/IF/LIF combined Rs.60

5/8 sq. ft. Run/V/IF/LIF Rs.90/75/65/55

Suede Selection:                                                                                                             

4/6 sq. ft. All Suede Rs.45

5/7 sq. ft. All Suede Rs.50

Lining Selection:

4/6 sq. ft. ABC combined Rs.37

5/8 sq. ft. AB combined Rs.47 and ABC combined Rs.44

Mesh selection:

5/8 sq. ft. Rs.26

Rejection

3/8 sq. ft. Rs.18

Langda

Rs.13

All per sq. ft. 

F/C SHEEP LEATHER FOR EXPORT

Japan is a good market for goat, sheep and hide leathers but since some time due to various reasons export to this country has not been much.

In order to tempt business exporters are offering reduced prices as follows:

4/6 sq. ft. All Suede JY 190, LIF Suede JY 160, Rejection Suede JY 110

6/9 sq. ft. All Suede JY 200, LIF Suede JY 170, Rejection Suede JY 120

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	2.20/1.75
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	1.70
	6/9	0.6/0.8 mm	TR-1	1.80

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	1.90
Sheep Cabretta leather	6/9	0.8/1.00 mm	ABC	2.00
Sheep lining leather	4/7 5/9	0.5/0.7 mm 0.6/0.8 mm	TR-1 TR-1	1.55 1.65

As far as export business is concerned, here again only limited contracts are being concluded with all difficulties as overseas customers are not anxious to do regular and big business at present. However Indian exporters are endeavouring their best to market their goods abroad. Many exporters are of the opinion that the government has no option but to give necessary incentives to exporters of leather and leather products to boost growth and export.  

GST

GST (Goods and Services Tax) which has come into force from 1st July 2017 is viewed in different angles by different people. It proved to be a mixed bag for consumers. While the government has all praise for it and claims it will build a new India by bringing benefits for all, business people think otherwise.

While consumer goods companies such as Hindustan Unilever and Amul have reduced prices on several products, eateries have started adding CGST 9% and SGST 9% in their bills. Even water canes have become expensive. Surprisingly alcohol and tobacco have been exempted from GST and more essential items like tea, coffee and ghee have been taxed. To the leather industry the GST is a big burden particularly at the present time when it is passing through an unprecedented difficult period.

No doubt, GST is a landmark achievement supported by all political parties but it requires amendments wherever and whenever necessary.

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