Many leading manufacturers and exporters of finished leathers have requested the Indian Finished Leather Manufacturers' and Exporters' Association and the Council for Leather Exports to arrange for a review of the troublesome ISI norms in accordance with the present needs.

The Central Leather Research Institute seems to be in a tight corner as it knows that certain new items are nothing but fully finished leathers going straight to the production of either shoes, garments or leather goods, they cannot issue the required certificate because of the Public Notice No 3-ETC (PN) 92-97 dated May 27, 1992. The Council's silence in this and many other issues like E.I tanned exports is highly regretted in the leather industry.

Apeal for it exemption
Many leather and leather products manufacturers and exporters have appealed to the Finance Minister Shri Yashwant Sinha to re-conisder the proposal in the recent budget for a phased withdrawal of exemption of export income over a period of 5 years under section 80 HHC and related Sections under the IT Act 1961. They feel that the present IT exemption on export income should continue till India's share in the global trade reaches atleast a satisfactory level of 1 per cent from the present 0.6 per cent.

The IT exemption, according to them, will enable them to compete in the highly competitive international market in the midst of high cost of credit, labour problems, poor infrastructure and congestion at ports.

They have further pointed out that even the most developed countries like the U.S.A encourage their exporters inspite of their world class infrastructure facilities available to them.

Some reputed tanners offered sheep leathers for shoes 5.5 sq.ft and up, A/B/C at Japanese Yen (JY) 175, D/E/F at JY. 110 and Rejections at JY 90, but very limited business was concluded.

Some enquiries from Korean customers for sheep nappa A/B/C at around $1.50 per sq. ft. cif were reported in the market. But this price was considered unworkable. Exporters wanted atleast US$1.60 for this item.

Full Chrome goat lining leathers are on the move continuously at prices ranging from $ 0.55 to $ 0.75 depending on the quality and selection. However, there is limited demand for goat upper leathers.

In the E.I goat skins, there is good demand for local items such as Rejection and Paper at around Rs.125 and 150 per kg. Leather goods manufacturers showed interest for good quality kid skins at around Rs.200 per kg. Some exporters of leather bought size 3/6 sq. ft lining skins at around Rs.18 per square feet. Prices of raw goats skins in most non-Southern pelt areas ruled at around Rs.55 to 65 whereas the prices of Southern Pelt goat skins are at around Rs.100 to 110. But for some special qualities and specific requirements tanners pay much higher prices which are erratic.

The author is a Chennai-based leather industry analyst