CHENNAI LEATHER MARKET
V.M. Khaleelur Rahman
Normalcy prevails in the Chennai leather market. Big exporters
of footwear are yet to start purchases of tanned goat skins. It seems at
present they are buying wet blue goat skins from Calcutta. However some leather
exporters have bought tanned goat skins at around the following prices - Run selection
Rs.95, V/IF combined Rs.55 and Lining Rs.40 per sq. ft. Agra and Calcutta
customers have operated in Rejection and Langda at around Rs.13 and 9 per sq.
ft. respectively. But the volume of business concluded is very limited and
there is no regularity of business.
As far as raw goat and sheep skins are concerned, prices are
as follows:
Kadappa
Goat Rs.40 and Sheep –Potla Rs.130 and Mendi Rs.65
Vijayanagaram
Goat Rs.30 and Sheep – Potla Rs.100 and Mendi Rs.40
Export Orders
Some patchy business seems to continue in goat upper and
lining leathers at around US$2.25 and 1.75 per sq. ft. respectively. But
regular contracts in big quantities are not visible. European and Far East
customers are very slow in business. Some exporters who supplied goods to
customers in Hong Kong are not getting payments. It is reported that many
crores of Rupees are due from customers in Hong Kong and China to Indian
exporters particularly in Tamil Nadu. The new trend of non L/C business such as
90 days D/A preferred by customers and accepted by Indian exporters some years
ago in order to have big contracts is considered to be the main cause for the
problems Indian exporters are facing now. Japanese customers are almost keeping
quiet and despite best efforts tanners say business is not taking place.
Although the 15% export duty has been abolished for E.I.
tanned goat skins by the government, much business is neither in sight not
expected as international leather market is passing through a never witnessed before difficult period. However it is believed that exporters will be able to
fetch good orders when demand arises by offering their goods at competitive
prices in the world market.
At the same time leather products manufacturers are not happy
with this duty abolition as they fear that raw skins will not be available for
them in the domestic market and they will have to suffer. It remains to be seen
what happens. It is well known that they have always been demanding a ban on
export of all sorts of leather.
F/C sheep leather
4/6 sq. ft.
All Suede JY 175, LIF Suede JY 140 and Rejection Suede JY 90
5/7 sq. ft.
All Suede JY 190, LIF Suede JY 150 and Rejection Suede JY 100
S/C OR F/C GOAT LEATHER
|
Material
|
Size/sq.
ft.
|
Substance
|
Selection
|
Price US$
per sq. ft. C&F
|
|
Goat upper
leather
|
4/7
5/8
|
0.6/0.8 mm
0.7/0.9
|
ABC
|
2.25
2.40
|
|
Goat
milled leather
|
4/7
|
0.6/0.8 mm
|
TR-1
|
1.60
|
|
Goat suede
leather
|
4/7
|
0.6/0.8 mm
|
All Suede
|
1.75
|
|
Goat
lining leather
|
4/7
|
0.5/0.7 mm
|
TR-1/2/3
|
1.75/1.65/1.55
|
|
Goat
lining leather
|
5/8
|
0.6/0.8 mm
|
TR-1/2/3
|
1.85/1.75/1.65
|
F/C SHEEP LEATHER
|
Material
|
Size/sq.
ft.
|
Substance
|
Selection
|
Price US$
per sq. ft. C&F
|
|
Sheep
cabretta leather
|
4/7
|
0.6/0.8
|
ABC
|
2.10
|
|
Sheep
cabretta leather
|
6/9
|
0.8/1.0
|
ABC
|
2.25
|
|
Sheep
lining
leather
|
4/7
5/8
|
0.5/0.7
0.6/0.8
|
TR-1
TR-1
|
1.75
1.85
|
(Writer’s
e-mail id:vmk1234@yahoo.com)
