Indian leather trade reduces export targets
Following a sharp fall-off in orders from the US and UK during the first quarter of the current financial year, India’s Council for Leather Exports (CLE) has reduced its target figure for leather exports for 2001-2 from $2.223 billion to $2.195 billion.
During the quarter, exports of leather goods stood at $477 million, an increase of 8.13 per cent over the same period last year, but less than the target of $555 million. As a result, exports of leather products (excluding finished leather) registered a negative growth rate of 0.97 per cent during the quarter.
In the US, the major chain and independent stores which account for around 50% of Indian leather product imports had cut down their inventory by around 25%, the CLE was reported as saying. The figures were recorded against the background of a shortfall in overall exports of 14%, with exports to the US and UK declining by 5% and 14% respectively.
In the Indian national press last week, leather industry sources were also quoted as saying that export losses could run to $40 million in the USA alone, and that the current year’s business (exclusive of finished leather) was at least 10 per cent down on last year’s. To take account of this, the CLE had reduced its export targets for leather footwear, footwear components, leather goods, saddlery and harness and non-leather footwear. The target for finished leather, however, which exceeded the quarterly target during the first quarter, was increased from $428 million to $500 million, while that of leather garments was maintained at $520 million.
In the same report, the CLE was also reported to have submitted an indicative mid-term plan for exports and strategies, 2001-06, to the Indian Union Commerce Ministry. It had also asked the Ministry to take steps to "relieve the leather industry from the onslaught of People For Ethical Treatment of Animals", which has been campaigning against Indian leather-based products for the last two years.
