Chennai: A 13.31 per cent decline in the export of leather garments from $425.21 million in 1997-98 (April-March) to $ 368.60 million in 1998-99 is worrying export planners and garment manufacturers.The performance in the last four months also does not seem to be better in the absence of big export orders. The usual polo model sold at US$85.00 and even more a year ago cannot fetch more than US$ 60.00 at the most now.The decline in prices is not so serious as the dwindling buying interest among even most of the regular buyers. In this scenario, targets of $380 million for leather garments and $1700 million for the coming year are unlikely to be achieved. The data given below compiled by Directorate- General of Commercial Intelligence and Statistics (DGCI&S), Calcutta provides the figures of leather garment exports made by different regions, their shares in total exports and variations in percentage. While Northern region continues to be first in the list with $173.61 million exports after a decline of 8.46per cent, Southern region despite its well-established leather supply connections suffered a big fall of 21.06 per cent with exports of $143.87 million. Western region's exports came down by 22.03 per cent to $27.61 million. Eastern and others performed better, though small in quantities, with 4.26 per cent and 361.05 per cent increase to $17.27 and $6.25 million respectively. The destination- wise details of leather garment exports reproduced below show that exports to big importing countries like Germany, the USA,the UK and Italy have been reduced. There is an urgent need to study the causes for the downward tendency and take remedial measures to boost exports, many garment manufacturers feel. The industry expects the Council for Leather Exports to do the needful for better facilities for marketing Indian products abroad.
In the local market, tanned goat suede skins for garment were sold:4/7 at Rs 32.00, 3/5 at Rs 28.00 and 2/4 at Rs 24.00 per square foot, but demand is limited to a few good quality ofTrichy tannage. Prices of raw goat skins declined further by about Rs 5.00 in almost all non-suede areas and were ruling at around Rs 40.00 per piece. Rawskins dealers found it difficult to sell their goods. Sheep cabretta and napa are salable at around Rs 70.00 and Rs 45.00 per square foot. Goat suede leather is slow in movements and the little demand that existed is for C/D grades at around Rs 40.00 per square foot. Shoe makers continue to operate in the market. They bought wetblue goat skins run at Rs 40.00 and suede at Rs 35.00 per square foot. Wetblue cow hides I/II were sold at around Rs 55.00 per square foot.
The author is a Chennai-based leather analyst
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.