India’s minister of State for Commerce, Jairam Ramesh, has stipulated that the government is expected to announce a decision to ban exports of raw materials within four key employment-generating sectors, including leather, in the near future. Instead, the government will only promote exports of value-added products through producers' co-operatives.

Mr Ramesh made this statement to media representatives at the end of a two-day visit to Gujarat, during which he studied the working of the women's co-operative organisation, SEWA, and the National Dairy Development Board. He said that the government had identified agriculture and horticulture, handloom, handicrafts and leather industries as the key sectors for imposition of a ban on raw materials exports.

A reaction from the Council for Leather Exports is expected to follow.

India exported finished leather worth $606.06 million in fiscal 2005-6 compared with $607.73 million in the corresponding period a year ago, which translates to a negative growth of -0.28%.