EXPORTERS FACE A CHALLENGING LEATHER MARKET

EXPORTERS FACE A CHALLENGING LEATHER MARKET


V.M. Khaleelur Rahman

The leather market continues to be firm with more demand and less supply. Exporters of leather and leather products are finding it difficult to cover their requirements of raw, wet blue and tanned hides and skins due to short supply and high prices. They have to book in advance for their needs of these items with suppliers. In leather centres like Chennai, Vaniyambadi, Ambur, Erode, Dindigul etc. high prices are quoted by tanners for their tanned and wet blue hides and skins as there is abnormal price rise in raw hides and skins everywhere in the country.

It is learnt that many leading shoe manufacturers are in Erode showing interest for wet blue cow hides. Good business is taking place. Wet blue cow hides 5th, 6th, 7th and 8th grades are sold at around Rs.47, 42, 34 and 27 per sq. ft respectively. These prices are just an indication. Prices may differ depending on the quality and selection of tanners. Many exporters of leather and leather products have to depend on imports also for their requirements particularly in higher selections even though here again prices are not attractive.

In the Chennai leather market, there is good demand for tanned and wet blue goat skins. Tanners are able to sell their 3/5 and 4/7 sq. ft. ABC grade of Grain, Suede and Lining selections at around Rs.60, 54 and 30/- per sq. ft. respectively. There are also reports of business in 4/7 All Suedes at around Rs.48/- per sq. ft. and E.I. tanned Rejections at around Rs.25/- per sq. ft. As availability of these items is limited, they are sold even before their arrival from the tanneries on certain conditions. The present situation is something unprecedented in the history of the leather industry. It has landed many exporters in trouble according to many sources. There are also reports of delayed shipments due to non availability of raw hides and skins at the right time. Many tanners say that suppliers of raw hides and skins are reaping the maximum benefit in the present market.

Overseas customers show interest for various items of leather meant for shoes and garments but workable prices are not available to exporters here. The quotations of exporters are almost as follows at present.

Size and Material Substance Selection Price US $ per sq. ft. C&F

3/5 sq. ft. Goat Upper Leather 0.6/0.8 mm ABC – D – E 2.25 – 1.60 – 1.50

3/5 or 4/7 sq. ft. Goat Suede Leather 0.6/0.8 mm ABC – D – E 2.00 – 1.50 – 1.40

4/7 sq. ft. Goat Lining Leather 0.5/0.7 mm TR-1/2/3 1.35/1.25/1.15

6/9 sq. ft. Goat Milled Leather 0.7/0.9 mm ABCD 2.10

AMBUR OPEN 2 EXHIBITION: 9th and 10th JULY 2011

Indian Shoe Federation (ISF) and Indian Footwear Components Manufacturers Association (IFCOMA) will be arranging their second edition AMBUR 2 exhibition of footwear components, accessories and finished leather on 9th and 10th July 2011 at Ambur Trade Centre in Ambur which is the leading cluster for export of finished leather, shoe uppers and full shoes. This cluster enjoys a good reputation for quality and delivery in the international market. Many leading international companies cover their requirements from the Ambur cluster which comprises of Ambur, Vaniyambadi, Pernambut, Vellore and Ranipet industrial belts. Their first exhibition held last year at the time of inauguration of the Ambur Trade Centre was highly successful. This time it is expected to be doubly successful bringing in the desired results for the development of the leather and leather products industry in the country.

The exhibition offers tremendous business opportunities for the participants and visitors. The exhibition is fully booked. Most of the leading tanners and manufacturers of footwear components and accessories will be displaying their products enabling leather product manufacturers in the country to source quality leathers and other materials from the quality conscious and reliable people.

The exhibition avenue, the newly constructed modern Ambur Trade Centre on the M.C. Road, is very near to the Ambur railway station and bus stand and convenient to all.

(Indian Leather, June 2011)

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