The Hindu Business Line : ‘Focus markets’ scheme to boost leather exports

Mr Rajiv Yadav (left), Executive Director, India Trade Promotion Organisation (ITPO), and Mr Habib Hussain, Chairman, Council for Leather Exports, at a press conference in Chennai on Friday.

Our Bureau

Chennai, Jan. 30 Treat the US and Europe as ‘focus markets’ scheme for the leather industry to give Indian exporters a chance to conserve their markets, say leather exporters.

According to Mr Habib Hussain, Chairman, Council for Leather Exports, the scheme would give the leather products exporters crucial marketing assistance in expanding into the markets in the US. In the context of the global slowdown and dropping demand, leather exporters are facing a demand drop of about 20 per cent in the coming year.

2008-09 opened on a buoyant note with the industry growing 20 per cent in the first six months over the previous year with exports touching $2 billion against the previous year’s total of $3.5 billion. During October-November, the decline set in with growth slipping to about 14 per cent over the previous year. The current year could end flat with no growth, Mr Habib Hussain said.

However, the coming year is of major concern as China, which is facing a more intense slowdown because of its focus on the US market, is trying to wean away India’s European customers. The Chinese manufacturers supported by their Government offer a 15 per cent advantage in pricing over the Indian manufacturers.

The global leather market is estimated at $116 billion with India’s share at about $3.5 billion. India only needs to gain an additional one per cent of the global market to grow. Something that can be managed if the Government and the industry get together, he said.

Mr Habib Hussain was addressing newspersons ahead of the India International Leather Fair to be inaugurated in Chennai tomorrow. Nearly 400 leather companies from India and abroad will showcase their products. The annual event comes at a crucial time for the industry.

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