Home / Knowledge / News / Leather sector trapped in quagmire of troubles
Leather sector trapped in quagmire of troubles
30
Dec '08
The booming leather industry in India is going through a difficult phase due to the ongoing recessionary trends prevailing in the global markets. To make matters worse, the industry in India is also facing stiff competition from its Asian neighbours like China and Vietnam.

The slowdown in the global markets, rising production costs and the credit crunch are creating a sense of insecurity among the leather exporting community. To top it all, they are also not able to upgrade their machinery to compete with other Asian countries due to the prohibitively high interest cost.

According to sources, Kanpur which is the hub of leather manufacturing in the country, has been affected the most. Most of the small units which used to process orders on behalf of the exporters have either shut down or are operating at low capacities and in the process creating unemployment in the industry.

The biggest stumbling block in the global markets according to experts is that the Chinese government is paying up to nearly 14 percent in export subsidies to its leather exporters compared to 8 percent in India. China also has a competitive advantage in producing large volumes at low prices.

According to experts, the Indian leather industry is perfectly capable of manufacturing quality leather and goods, but is not able to take advantage of the fact due to constraints in technology, shortage of skilled labour and more so because of a fragmented industry base which is made up of small and medium size units.

The experts cite the high prices of fuel in the Indian market as a cause of concern for the industry. Despite prices of crude falling to four year lows, the prices of fuel in the Indian markets are yet to be lowered which in turn adds to production costs and in turn makes the exporters un-competitive in global markets.

The leather industry as a whole provides employment to nearly 2.5 million people in India and is also one of the biggest foreign exchange earners in the country. Experts aver that if the government does not intervene in the development of the sector it could lead to severe repercussions and large scale unemployment.



Fibre2fashion News Desk - India

Must ReadView All

Textiles | On 20th Jan 2017

TEA expects budget to upscale textile skill industry

The Tiruppur Exporters’ Association (TEA) has requested the Central...

Textiles | On 20th Jan 2017

Bangladesh could earn $60 billion in exports by 2021

Bangladesh is expected to earn over $60 billion in exports by the...

Courtesy: PIB

Textiles | On 20th Jan 2017

Govt to help Tangaliya weavers purchase looms: Irani

Government of India will facilitate Tangaliya weavers in purchase of...

Interviews View All

Janak Dhamanwala & Sunil Dhamanwala
Jansun

Moving towards sustainability is also a social change

Cyril Pereira
Reed Exhibitions India, organiser of Asian Machine Tool Exhibition 2016

'Major problem in the textile machinery manufacturing industry is the lack ...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

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

Johan Berlin
InvestKonsult Sweden AB

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

Sonam & Paras Modi
SVA

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

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

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
January 2017

January 2017

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

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search