Export of leather and leather products has to grow at an accelerated rate of 20% a year to hit the target of $7 billion by 2010-11, according to M Rafeeque Ahmed, president of the All India Skin and Hide Tanners and Merchants Association (AISHTMA).
However, the marginal export growth during 2006-07, the slow progress in tannery modernisation, little attention to employee skill upgradation, and the lukewarm approach for the deployment of modern management practices in tanneries, make this target appear to be too ambitious for this traditional family-run industry.
During 2006-07 export grew only 8.33% in dollar terms and 10.72% in rupee terms, from $2752.50 million to $2981.79 million and Rs 12186.28 crore to 13499.24 crore, respectively.
There had not been any significant effort from the part of tanners and finished leather manufacturers for the modernisation of the production process or in the upgradation of workers skills, Rafeeque told the members of AISHTMA at the 90th annual general body meeting. He said, ?I am somewhat disappointed with the efforts bestowed by you on these two areas. The opportunity provided by the tannery modernisation programme is yet to be availed in full. You have to embark on the project of modernising the industry in full steam, by utilising the funds earmarked in greater measure.?
Ahmed offered to help the members for speedier processing of their applications. He said he would take up the matter with the Union commerce and industries minister, to evolve a suitable mechanism to process applications for the tannery modernisation fund without any hassles. He asked tanners to make use of available institutional support for skill upgradation of workers. Steps were under way to open a Footwear Design and Development Institute (FDDI), in Chennai, similar to the one in Noida.