Footwear units meet today

Alarmed at the anti-dumping duty sought to be imposed by the European Union against cheap imports of footwear from India, the Council of Leather Exports (CLE) is meeting in Kanpur tomorrow to assess the implications.

The EU recently set up two anti-dumping investigations against the import of footwear from India, following objections raised by the European Confederation of Footwear Industries.

The Confederation said the import of safety shoes from China and India was hurting the footwear industry in Italy, Portugal, and Spain.

Sources close to the leather industry in Kanpur said the EU move might hurt the Kanpur leather industry since it contributed 95 per cent of the safety shoes produced in India. Also, the share of Kanpur in exports to European markets is nearly 95 per cent.

The EU anti-dumping investigations affect at least five Kanpur-based large-scale manufacturers in the safety shoe segment. These manufacturers export safety shoes and other leather products worth more than Rs 1,000 crore a year to countries in Europe and elsewhere.

Super House, Super Tannery, Zaz Sons, Rahman Exports and Mirza Tanners are the main city-based exporters. Headed by Chennai-based leather industrialist Rafeeque Ahmad, former president of the Federation of Indian Exports Organisations (FIEO), the CLE office-bearers will discuss how to meet the European threat.

Industry sources said it was unfortunate that India had been put in the same bracket with China, because Indian exporters' share in the European market was barely 3 per cent. The commission has sought information from exporters and most of the details have already been provided to them.

Now the EU authorities may seek information from the individual exporters, who will have to answer questions as part of the sampling procedure.

Industry sources, however, are hopeful the situation can be met. The EU commission is verifying if Indian exporters sold safety shoes cheap, compared to European manufacturers. Besides, the Commission is also investigating the costs and accounts of the individual exporters.

CLE sources said they had assessed the details on both counts and hopefully the Indian exporters would come out in the wash.

CLE Regional Director Indira Mishra said although the agenda of the Kanpur meet was different, the European Union move would also be discussed at length to chalk out strategy as how to tackle such situations in future.

Leading city-based leather exporter Mukhtar-ul-Amin said even South Africa had imposed anti-dumping duties on Indian imports but those were withdrawn after investigations.