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Dull trading in leather

K. Asadullah Basha

WHILE the trading in the leather market has been reported to be dull this week, hectic activity is reported in the raw centres. The prices of goat skins have again gone up by Rs 10 to 15 from the existing ruling prices at different raw skins centres whic h varies between Rs 130 to Rs 160 (subject to the arrivals of the selections of the particular pelt).

Since good demand continues for caberetta, the raw sheep skins prices at some centres of the Southern region have again gone up a little. Because of the demand and short supply, the prices of cow and cow calf have also gone up by Rs 25 to Rs 50 a piece. Cow calf of 3 kg average was reported to have been sold between Rs 175 to Rs 200 a piece at different centres, despite unseasonal arrivals. This peculiar tendency of the demand has made tanners worried.

The prices of buffalo hides and calf too at centres such as Sholapur and Hapur have gone up marginally. Meanwhile imports of wet blue and raw hides and skins from South African and Saudi Arabian countries are on the rise.

In export front, good demand continues for all types of leather and leather products but with usual price resistance. A good number of enquiries have been reported for different kinds of garments, which include jackets, blousans, long coats, pants, skirt s etc. from European, Scandinavian and American countries.

Confirmed orders for garments made out of goat suede ranging between $70 to 80 from countries such as Italy, France and Spain have been received by many a garment exporters. Confirmed train orders are reported to have been executed by some leading export ers for exclusive top quality fashion garments made out of imported/domestic superior finished leather at $ 140 to 160 depending on size and model from countries such as the US and Germany.

But generally garments made out medium average/average lot of sheep nappa were sold between US$35 and 50 in volume to mainly Italy, France, UK, Spain and Portugal. Skirts, tops etc., were sold between $15 and $20.

Manufacturers and exporters of fully finished leather and leather products allege that again clandestine export of E.I.tanned leather is on the rise.

According to them while the demand exists for any type of article, be it in leather or leather products, they had to accept the orders at a very thin margin because of global competition. At the same time they had to compete in the domestic front too wit h lot of difficulties.

But according to E.I.Td. leather exporters, the allegations made against them are untrue. In fact, they get good price for their E.I.Td. goat leather at $1.10 to 1.20 for 4/7 run selection and less 0.10 cents for each down grade from Vth to IF, from coun tries such as France, Spain, Italy and Japan.

They say they do not get such attractive price for their lots from the domestic manufacturer-exporters of fully finished leather or leather products. Other major benefit they say is the volume of business and payment they are assured from their overseas buyers which they cannot expect from the domestic buyers. They also argue that when their buyers were bearing the extra burden of 15 per cent duty on the export, no room for clandestine exports exist.