But in dollar terms, exports have declined 5.24 per cent to $613.15 million from $647.04 million since the rupee has depreciated from Rs 35 a dollar to over Rs 42.

The slide in footwear exports seems to have accelerated in the five month period recording 26.89 per cent fall from Rs 447.27 crore to Rs 327.01 crore during the five months under review. Almost all the major footwear importers had reduced buying. The decline in exports to Germany had gone down by 35.70 per cent, to the US 36 per cent and the UK 31.16 per cent. However, France, Russia and Uzbekistan had increased purchases.

The surge in exports of footwear components continued to all traditional markets and touchedRs454 crore against Rs 366.53 crore in the first five months of 1997-98. The US, UK and Hong Kong (for China also) were the major buyers.

Finished leather exports made a 7.89 per cent increase to Rs 473.84 crore from Rs 439.18 crore. There had been a substantial rise in exports to Hong Kong, Spain and Portugal.

The exports of leather garments had been slow in picking up and there had been only 4.06 per cent rise in exports from Rs 605.71 crore to Rs 630.32 crore. Major markets are in Germany, the US and Italy.

Leather goods, including hand bags, belts and purses are still the mainstay of the leather industry. These items showed an increase of 46.23 per cent spurt in exports to Rs 610.31 crore from Rs 417.37 crore. Germany, the US and the UK were the big buyers.