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)