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Leather exports exceed $1 b in H1 

Joseph Vackayil  
Chennai: The uptrend in the export of leather and leather products visible from the early months of this financial year has continued to September-end and crossed $1 billion. According to the statistics now available with the Council for Leather Exports (CLE), the trend is continuing to be positive and the prospects for further growth are bright. CLE Excutive director S Audiseshiah says the year may close with over $2 billion exports.

The star performers in the first half of the current financial year are finished leather (44.68 per cent growth) and leather garments (48.13 per cent).

During April-September 2000, export of leather and leather products increased 30.52 per cent in rupee terms to Rs 4,481.26 crore against Rs 3,433.43 crore in the similar period last year. In dollar terms the growth has been 25.78 per cent at $1000.81 million against $795.66 million.

In export earning leather garments tops the list with Rs 1074.65 crore ($240.01 million) followed by leather goods Rs 1,040.21 crore ($232.31 million), leather footwear Rs 883.38 crore ($197.29 million), finished leather Rs 776.57 crore ($173.43 million) and footwear components Rs 553.80 crore ($173.43 million).

The growth in the exports of leather garments is a new, encouraging development. Mr Audiseshiah, said the industry is focussing on the US market where India has only a nominal presence now, accounting for one per cent of the US imports of leather and leather goods. The target is five per cent in the long run and double the exports from the current $350-400 million in a year or two. He said the Council, in association with the industry is preparing a medium term indicative plan for leather export targets and strategies.

After meetings with the representatives of the industry in different regions a draft plan document is ready. It would be finalised after meetings with select exporters in Delhi and Chennai and submitted to the government by December-end. Four countries account for almost 60 per cent of the total exports: The US $199.83 million, Germany $154.39 million, the UK $140.09 million and Italy $110.85 million.

In overall exports of leather and leather products the southern region has a share of 41.14 per cent, western region 13.90 per cent, eastern region 15.23 per cent, central region 3.51 per cent and the other areas 5.63 per cent.

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