Leather exports up 6% at Rs 11,930 crore

Exports of leather and leather products from India have grown by 6.4 per cent to Rs 11,929.90 crore during 2005-06 from Rs 11,212.07 crore in 2004-05.

Speaking at the 89th annual general meeting of All India Skin and Hide Tanners and Merchants Association (AISHTMA), Rafeeque Ahmed, the president of the association, said the exports grew by about 8 per cent in dollar terms at $2.69 billion in 2005-06 from $2.49 billion in 2004-05.

The exports of leather footwear grew by 17.86 per cent to Rs 3,483.28 crore from Rs 2,955.51 crore, while those of saddlery and harness rose 22 per cent to Rs 338.26 crore from Rs 277.26 crore with the leather goods exports growing by 9.20 per cent to Rs 2,873.96 crore from Rs 2,631.71 crore.

However, the export of finished leather, footwear components, leather garments and non-leather footwear reported a decline by 1.74 per cent, 1.56 per cent, 1.76 per cent and 8.19 per cent respectively.

While the industry has set a target of creating an additional 5 lakh job opportunities by the end of the Tenth Plan, Ahmed stressed the need to evolve a suitable plan for training manpower by involving organisations like Indian Institute of Leather Products and Central Footwear Training Institute.

There is also a need for upgrading skills, increasing labour productivity and disseminating knowledge and techniques to workers, he added.

He noted that the industry's record in modernising the tannery segment was disappointing, as there was poor utilisation of government funds.

He pointed out that while the Centre had earmarked Rs 290 crore during the Tenth Plan for the modernisation of tannery, only Rs 20 crore had been sanctioned as subsidy till a month ago.