• PAGE ONE
• INDEX
• HOME

Sheep nappa business hit hard

K. Asadullah Basha

BUSINESS in sheep nappa was hit hard this week as dull

trading continued in the Periamet leather market in general. Traders/manufacturers dealing in sheep nappa lost Rs 5-10 a

sq ft and on an average Rs 25-50 a piece at the present price

levels offered for the medium and average lot by the Delhi based

garment manufacturer-exporters. As a result, they have slowed down their purchases. Some leading garment manufacturer-exporters' export bill payments have reportedly been held up by

one of the leading American buyer causing hardship to them in

their purchases.

Stocks of nappa leather have piled up in the market as

businessman were not prepared to compromise on the price, since

the lots in raw stage which they had purchased were of festivals

arrivals at exorbitant prices.

At the same time, there was no sign of reduction in the prices of goat and sheep skins in the raw market centres because of the seasonal arrivals.

According to garment manufacturer-exporters, though the orders from overseas buyers were good, they were unable to

materialise the business due to price resistance. The price

offered was Rs 200-250 less from the existing prices of a

garment.

Even the trading in E.I. tanned/semi finished and finished goat leather was dull to an extent. Business in

different kinds of finished leather made out cow and buffalo

hides, too, was not encouraging.

The reason for this kind of slow trading has been attributed to the financial crunch the industry is facing due to non-disbursement of duty draw back on leather and leather products export since November 2000.

While the official in charge of EXIM Policy at CLE endorsed this, he said disbursement has started

from April 26 onwards and exporters would get their accumulated

amount very soon.

On the export front, no considerable change was reported.