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Govt bans crusted leather exports from December
Sep '11
Owing to short supply and increase in prices, the Ethiopian Ministry of Industry (MOI) has decided to impose a ban on crusted leather exports from December 2011 onwards.

After soaking the leather in water and removal of hair, in the third stage the hides are cleaned and semi-processed leather is obtained after the wet operation stage.

Such semi-processed leather is then ironed under low heat and dried to make it suitable for long term storage and is known as Crusted leather.

The crusted leather is then exported or utilised in leather units engaged in production of value-added products like gloves, shoes and jackets.

The prices of crusted leather have surged following a rise in demand for sheepskins as well as hides and a rush to secure all stocks available in the market expecting further price rise.

In 2010, a major part of Ethiopia's leather export earnings came from crusted leather exports. While the country exported leather worth US$ 104.1 million, crusted leather exports accounted for 38.1 percent of the same which came to US$ 39.7 million.

The ban is intended at putting a break on the rising prices of hides and skin in the market, and to remove intermediaries who try to gain by speculating on prices.

Fibre2fashion News Desk - India

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