Home / Knowledge / News / Leather exports likely to dip in current fiscal
Leather exports likely to dip in current fiscal
23
Dec '08
Experts from the leather industry estimate that current fiscal will witness a drop of nearly 25 percent in its export figures of leather products. This situation can be attributed to low demand in the international market.

Now for leather being one of the most important export items of the country, earning huge amount of foreign currency, present situation has become a matter of concern for the industry.

There is a huge stock of finished leather lying unsold, on the back of declining international market prices. Each year, Bangladesh accumulates plenty of rawhide, after the celebration of the Muslim religious festival of Eid-ul-Azha. This year, more than 2.9 million cowhide and 4.5 million goat skin has been collected.

What makes the scenario so fearful is that the prices of finished leather goods are likely to slip up to 40 percent this financial year and such a drop will directly hit the 195 tanneries in the country.

In this regard, Mr Alhaj Rezaul Karim Ansari, Chairman, Bangladesh Finished Leather, Leather Goods and Footwear Exporters Association, (BFLLFEA) told Fibre2fashion.com, “Owing to the continued global financial crisis, demand for finished leather and leather goods has dropped in international markets in the last three months. This will ultimately affect our leather exports.”

Available statistics show that price of per square foot of finished leather which was $4.70 per square foot in last fiscal, has gone down to $4.20 in the past two months because of the global financial crisis.

The overall market size of the leather industry is nearly Tk35000 million a year, with export figures standing at $284 million in 2007-08.

”Further drop in leather exports is likely this year, influenced by slumping demand in international markets. Our prediction is that global economic crisis will reduce consumption and eventually prices,” stressed Mr Ansari.

While discussing what the Bangladeshi Government should do to improve the present condition, BFLLFEA Chairman stated, “At present there is no provision of cash incentives on exports of leather. We requested our Governments to provide cash incentives on exports of leather to safeguard the industry along with the request to reduce interest of bank loan.”

“However we have to look far and wide for potential buyers who will offer high prices for our leather. This has created insecurity over reaching export targets set for the year,” said Mr Ansari on a concluding note.

Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 9th Dec 2016

‘Less demand may make it hard to achieve export target’

The $48 billion target for textiles and garment exports for 2016-17...

Textiles | On 9th Dec 2016

GST Council may decrease tax rates in future: CBEC

The goods and services tax (GST) Council might reduce the proposed...

Courtesy: Gucci/Pantone

Textiles | On 9th Dec 2016

Pantone announces greenery as colour of the year 2017

Pantone, an X-Rite company and the global authority on colour and...

Interviews View All

Rahuul Jashnani
Jashn

‘Online economy has changed the whole dynamics of buying habits.’

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Sonam & Paras Modi
SVA

Sonam and Paras Modi's Sva Couture is synonymous with head-turning...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search