The year is expected to close with an export turnover of $1.9 billion.Two notable factors conspicuous in the latest statistics compiled by the market research unit of CLE, based on the data supplied by DGCIS, Calcutta, are the emergence of US as the leading buyer of Indian leather and products and the declining share of the southern region, comprising mostly Tamil Nadu, in exports.

During April-July 2000, export of leather and leather products increased 25.13 per cent in rupee terms to Rs 2,658.92 crore from Rs 2,124.88 crore in the similar period last year. In dollar terms the growth has been 22 per cent at $44.08 million against $ 42.97 million in April-July 1999.

In export earnings leather goods tops the list with Rs 612. 34 crore ($138.91 million) followed by leather garments Rs 559 crore ($126.81 million), leather footwear Rs 555.44 crore ($126 million), finished leather Rs 465.90 crore ($105.69 million) and footwear components Rs 358.39 crore ($81.30 million).

The growth in the exports of leather garments is considered very impressive and promising since this sector had been in doldrums for over three years.

New fashion trends, end of the Asian economic crisis, decline in east European leather production, the new markets in the US and Latin America etc are said to be the reasons for this sudden surge.

It seems that Indian exporters have been able to capture some of the markets in the US that had been dominated by Turkey, Italy and east European countries. However, they were not able to dent the Chinese domination.

During the first four months of the current financial year total exports to the US has been $116.64 million (19.34 per cent) followed by Germany $94.15 million (15.61 per cent) and the UK $86.39 million (14.32 per cent).

There has been quantitative increase in exports to the US. The appreciation of dollar against rupee also helped better realisation.

The fall in the value of euro is a matter of concern for the exporters as the European countries are their best and traditional markets.

In overall exports of leather and leather products, the share of the southern region has come down to 39.67 per cent from 44.06 per cent in April-July 1999.

Except for the exports of footwear components, which has gone up to 79.43 per cent from 75.38 per cent during April- July 2000 against the same period last year, the share of southern region has been on the decline.

The fall has been to 59.29 per cent from 65.77 per cent in leather, to 15.65 per cent from 18.29 per cent in leather goods, to 31.49 per cent from 43.53 per cent in leather garments and to 36.24 per cent from 40.88 per cent in leather footwear.

It appears that the southern region, particularly Tamil Nadu is emerging as a major tanning centre for making semi-finished leather which is being sourced by other regions for making finished leather and products.