The step-motherly treatment meted out to the leather sector by Council for Leather Exports (CLE) is considered to be the main cause for its downward tendency along with the effluent problems. ``Interested to promote leather products, the council brought in restrictive measures like export duty, quota system, Leather Development Fund (LDF) etc. only on leather exporters at different times and harmed the industry'', leather exporters lament, although these are no more in existence.

While the export duty and quota system were withdrawn by the government, the LDF was held unconstitutional by Madras High Court and the amounts collected from leather exporters by CLE were ordered to be refunded with interest. CLE appealed against this judgment to the Supreme Court at New Delhi but after sometime withdrewthe case and refunded the amounts as per the verdict of the Madras High Court.

The data given below compiled by Director General of Commercial Intelligence and Statistics (DGCI&S), Calcutta shows the figures of leather exports made by different regions in 1997-98 and 1998-99 (April-March), their shares in total exports and variations in percentage.

While Southern region continues to hold the first place with exports of $170.04 million in 1998-99 as against $199.32 million in the previous year, Western region's exports came down from the exports of $65.67 million in 1997-98 to $54.80 million in 1998-99. Northern region exports also declined.Raw goat skins in most of the non-suede areas are sold at around Rs 40 to Rs 50 and in suede areas at around Rs 80 to 100 per piece depending on size, quality and pelt. Redhair raw sheep skins of Southern pelts and wool raw sheep skins are fetching upto Rs 190 and Rs 120 per piece respectively. Raw cow hides, ordinary types, are sold at Rs 300 to Rs 400 and betterSouthern pelt qualities are bought at prices ranging from Rs 500 to 550 per piece.

In the local market tanned goat skins continue to have only a small volume of business at almost unchanged prices: Garment suede 4/7 Rs 31 to 33, 3/4 Rs 27 to 28, All suede 4/7 Rs 28 to 29, Shoe suede 3/5 Rs 24 to 25, A lining Rs 19, B lining Rs 17, c lining Rs 15 and Rejection Rs 9 per sq.ft.

Garment manufacaturers are looking for orders in September after the holidays abroad. Hence their demands for sheep nappa and suede leathers are low. Prevailing prices are: Sheep nappa 4/7 lot Rs 4 to Rs 4.50. EFSR Rs 3.50 to Rs.3.75 and Rejection Rs 1.75 to 2.25 per sq.dcm. Goat garment suede leathers are sold at around Rs 5.50 per sq DCM for ABCD and Rs 4.25 per sq.dcm for CD.

Export market is very slow due to overseas holidays particularly in Europe. However, some patchy business in goat linings were reported at unchanged prices.

Some leading shoe manufacturers are getting ready to participate in GDS International Footwear Fairto be held in Dusseldorf, Germnay from September 9 to 12, 1999. They have hopes of record volume of busines taking place in this most important international shoe fair.

(The author is a Chennai-based leather analyst)