Leather exports continue to climb
India’s leather exports have improved significantly in the first four months of this fiscal year (April-July 2007) in US$ terms, however, in rupee terms it has been a very different story because of the sharp appreciation of the currency in recent months.
Exports rose some 8.45% in dollar terms to reach $1,022.17 million, compared with the $942.49 million recorded in the same period of the prior year. But, in rupee terms, exports actually fell 2.67% to Rs41.939 billion, versus Rs43.088 billion a year earlier.
Looking at the figures in $-terms, the saddlery and harnesses sector posted the highest growth, achieving a 48.53% rise in exports from $22.34 million in April-July 2006 to $33.18 million in the same period of 2007. Footwear components also performed well rising 39.56% to reach $96.51 million, up from $69.15 million; while the leather footwear sector improved 18.93% to achieve exports of $336.17 million, up from $282.68 million. Leather garments also posted slight growth of 0.1% from to reach $96.77 million from $96.67 million.
On a less positive note, exports of finished leather declined by 5.18% to $222.43 million from $234.57 million and leathergoods fell 1.58% to $218.31 million from $221.81 million in April-July 2006.
Italy remained the main export market for Indian leather during the period, consuming $150.17 million worth (+14.69%), followed by Germany at $144.41 million (+26.72%), the UK at $117.97 million (+12.83%) and the USA at $94.30 million (-6.38%).
In terms of imports, India consumed raw hides and skins and leather worth $156.30 million during the four-month period, 30.19% higher than the $120.05 million imported last year. Raw hides and skins accounted for $28.81 million of these imports with leather making up the remaining $127.49 million.
