The current slow down in the developed countries has resulted job loss of around 75,000 to 100,000 in the Indian leather industry in the last three months. The industry has also revised the initial export target of $4 billion, which it had set for 2008-09, to $3.5.
Speaking to reporters in Chennai today Habib Hussain, chairman, Council for Leather Exports said that though first six months of the current financial year was good for the industry, with a growth rate of 20 per cent growth in exports, it had gone down to 14 per cent in the past three months. Exports stood at $2 billion at the end of December 2008, against the $3.5 billion at the corresponding period of the previous year.
Hussain added there is delay in getting fresh orders from abroad and the importers, who already received consignments, had sought more time to make payments.
Currently the industry is facing a tough time and competition from the Chinese products. He noted, Chinese manufacturers have further reduced price by 15 per cent on the leather products since their export has also come down.
The dominant markets for India are Europe and US. He noted, of the total leather export 65-70 per cent are exported to Europe and 20-25 per cent to US. There has been a dramatic fall in retail business in these countries affecting exports from the manufacturing countries.
The government should step in with relief and promotional packages, Hussain said. "Currently the industry is facing credit crunch, government should give term loans for the people who lost in foreign exchange".
