India to search further afield for raw materials

18/05/2010
India’s Council for Leather Exports has identified around 20 possible new sources of hides and skins for the country’s tanning industry to tap into. The organisation said it had compiled the list, which includes Uzbekistan, Kazakhstan and countries in Central and South America, the Middle East and Africa, based on the quality and quantity of livestock available in each country.

Industry representatives have said the recent rupee appreciation against the US dollar and the euro has pushed up prices of raw material by around 70%. India has to look at newer markets and non-traditional countries, they said.

The council had identified Uzbekistan and Kazakhstan as two of the best potential new sources of raw hides, skins, wet blue, crust and finished leather. Indian media have said a delegation will work to gather information on the Uzbek and Kazakh markets, meet local suppliers of hides and skins, and explore possibilities of entering into joint ventures and technical collaborations with tanneries in the two Central Asian countries.

“There is a shortage of raw material in India. We have a shortage of sheep skin and these countries offer a better quality and different types of raw materials. Also, the markets are expanding and we need to buy from other countries, so that we can control our costs,” said M Rafeeque Ahmed, chairman and managing director of the Farida Group and president of the All-India Skin and Hide Tanners and Merchants.