Chennai Leather Market - October 2019

CHENNANI LEATHER MARKET 

V M Khaleelur Rahman

Chennai leather market is almost normal with slight variation in selling prices. Exporters of leather and leather products buy EI tanned goat skins at around the following prices:

6/9 sq. ft. Run Rs.95, Fifths Rs.75, Inf. Fifths Rs.65 and LIF Rs.55

4/6 sq. ft. R/V/IF combined Rs.60

5/8 sq. ft. R/V/IF combined Rs.65

4/6 sq. ft. All Suede. Rs.33

4/6 sq. ft. Lining Rs.35

Prices are per sq. ft.

Tanners say that business is not continuous and quantities sold are not big. It is reported that some North Indian customers have shown interest for shoe upper and lining leathers but further details are not available.

Local items Rejection and Langda are sold at around Rs.12 and 8 per sq. ft. respectively.

However some higher prices are fetched for better qualities.

Export Contracts

No news of export sales is available at the time of writing this report but no doubt some business as usual should have taken place. Exporters I am in touch with have not concluded any business for export now.

As far as Japan is concerned, there is no business despite best efforts by exporters here. Some exporters prefer to have business with Japanese customers because of their excellent business system. But they are keeping quiet as they have no orders. It is hoped that things will change slowly for the better and business will be possible in the coming months.

Some big shoe factories are functioning well in Ambur with their best efforts in marketing and best quality controls.

Quotations of Exporters

F/C sheep leather

4/6 sq. ft. All Suede JY 180, LIF Suede JY 140 and Rejection Suede JY 90

5/7 sq. ft. All Suede JY 195, LIF Suede JY 150 and Rejection Suede JY 100

6/9 sq. ft. All Suede JY 205, LIF Suede JY 160 and Rejection Suede JY 105

S/C or F/C Goat Leather

Goat upper leather 4/7 sq. ft., 0.6/0.8 mm, ABC, US$ 2.20

Goat lining leather 4/7 sq. ft., 0.5/0.7 mm, TR1/2/3, US$ 1.70/1.60/1.50

Goat lining leather 5/8 sq. ft., 0.6/0.8 mm, TR1/2/3, US$ 1.80/1.70/1.60

F/C Sheep Cabretta Leather

4/7 sq. ft., 0.6/0.8 mm, ABC US $ 2.15

6/9 sq. ft., 0.8/1.0 mm, ABC US $ 2.35

F/C Sheep Lining Leather

4/7 sq. ft., 0.5/0.7 mm, TR1 US$ 1.80

5/8 sq. ft., 0.6/0.8 mm, TR1 US $ 1.90

All prices are per q. ft. C&F

Export Promotional Activities

The Council for Leather Exports (CLE) under the Chairmanship of Mr. P.R. Aqeel Ahmed and Executive Directorship of Mr. R. Selvam, IAS, is carrying on excellent export promotional activities in traditional and other potential markets by participating in various international forums, seminars, exhibitions etc.

Mr. P. R. Aqeel Ahmed, Chairman, CLE, is having a busy schedule meeting government officials and honourable ministers. In the important meetings he took part during the recent months including the Pre-budget consultation meeting, he made it clear that the leather sector has the potential to march forward and achieve 10% annual growth and export to its traditional Europe and USA and other new markets and protect the domestic leather industry in which lakhs of people are employed. His requests made in different forums to honourable ministers for “certain additional support measures like implementing Rebate of State and Central Levies scheme for leather, leather products and footwear sector, reduction of GST for footwear and inputs used in making footwear, additional support measures to penetrate US market, removal of animal quarantine clearance for all types of finished and crust leathers etc.” are bringing good results. One feels that the leather industry is determined to improve and achieve the targets with the good support it is getting from the government.

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