North takes lead in leather exports

Exports cross $2-billion mark for the first time

Leather exports from the country have shown a positive trend this year, largely on the increase in exports from the northern region and the steady growth in the central region.

Exports have increased to Rs 9,623 crore, crossing the $2-billion mark for the first time. This is a hike of 6.05 per cent in rupee terms and 11.69 per cent in dollar terms.

The northern region has leather-producing centres in Agra, Noida, and Jallandhar. And the region has recorded a growth of 23 per cent in production from Rs 1,058 crore to Rs 1,280 crore in 2004-05. Agra's exports have reached Rs 837 crore from Rs 654 crore.

The central region, comprising Kanpur and Unnao, has been the principal leather exporter in the past 10 years, and has once again maintained a steady trend. Its turnover has increased to Rs 1,678 crore from Rs 1,439 crore.

But stagnation in the southern region of the north has continued. Its exports decreased marginally to Rs 4,110 crore from Rs 4,140 crore.

A source told Business Standard the southern region had been stagnating because the units had not renovated in the manner that those in Kanpur or Agra have. Similarly, those who were exporting to Russia could not face competition, and they too have gone under.

Similarly, Agra has taken the advantage of the fact that it has a very large numbers of footwear makers. Kanpur can do much better than now if it gets the required infrastructure.

The Container Corporation used to provide three trains a week, but now there is only one, and sometimes not even that. This is hampering a quicker progress of the central region.

The source added the export figure of $2 billion can go up much more, but for the infrastructure facilities. Orders were expected from Europe and the United States, but subsequently China and South-East Asia got them.

The central region has shown increase in exports of all products. Finished leather exports have increased to Rs 552.07 crore (Rs 486.44 crore last year), footwear Rs 509.76 crore (Rs 397.15 crore), footwear components Rs 200.81 crore (Rs 187.03 crore last year), garments Rs 24.03 crore (Rs 24.31 crore last year), gloves Rs 2.35 crore (Rs 0.02 crore last year), and saddlery Rs 273.76 crore (Rs 271.68 crore).

The trend of converting leather into finished footwear has been maintained in the region.