Indian leather exports to fall short of target
Indian leather exports are expected to fall slightly short of the country’s $6 billion target for the year, with current estimates set at $5.75 billion. However, this would still represent a rise of approximately 15% year-on-year, according to the All India Skin and Hide Tanners and Merchants Association (AISHTMA).
President of the association, M Rafeeque Ahmed, said: “Though I am not happy at the shortfall, I feel despite the turbulence in the global finance, we have done reasonably well on the export front.”
Many exporters are investigating new markets in South America, Africa and the domestic market in response to the drop in demand from certain European countries. However, while exports to Germany, Italy, Spain and Russia are down by around 10%, exports to the US and Denmark are up by approximately 20% and exports to the UK have risen by 10%.
According to Mr Ahmed, the sector has been harmed by currency fluctuations and raw material shortages, with large quantities of semi-finished leather being exported to China and Italy. Despite this, the leather sector is now among the country’s top ten foreign exchange earners.
