High global demand helps leather exports touch new peak in 2000-01

Joseph Vackayil

Chennai, May 7: THE domestic leather industry has touched a new peak in exports supported by very strong global demand for finished leather, leather garments and leather goods.

Leather exports during the first 11 months of 2000-2001 (April-February) were worth $1804 million (Rs 8227.33 crore). This is a significant figure as the industry is reaching up to this level for the first time. The previous highest was the $1763 million achieved in 1995-96. The executive director of Council for Leather Exports (CLE), Mr S Audiseshiah expects the annual turnover for 2000-2001 to reach over $2 billion.

The major contributors to the export basket, besides footwear, were finished leather, $339.48 million, leather garments, $429.34 million and leather goods $410.23 million. The new trend in leather industry augurs well for India. There is substantial fall in world leather supply. Europe which used to contribute about 17 per cent of hides and skins to the world market is not even supplying half that quantity at present. The European beef industry has been affected by the mad cow disease and the number of animals being slaughtered has gone down which affects the leather sector also. Also, in the UK, France, Ireland and the Netherlands, where this disease is prevalent, cattle is torched and not slaughtered.

India with over 10 per cent of world livestock and over 1000 tanneries can be a major supplier of finished leather. The world demand for leather garments, leather goods and upholstery leather also is fast increasing. The US is emerging as the single largest market.

Leather garment sales in 2000 increased 71 per cent to $4.2 billion, industry sources say quoting the US Leather Apparel Association. The customers in Europe and the US are now demanding cars with leather interiors. The increase has been from five per cent to 20 per cent and the trend is promisingly upward.