Leather tanneries expect resurgence after Eid

24 Nov '09

2 min read

The export oriented leather industry is optimistic that it will be able to stage a recovery from the slowdown of the last few months, mainly due to the upcoming Eid-ul-Azha festival.

This upbeat mood stems from the fact that during the festival, a large number of animals are sacrificed as per rituals and they are expecting an increase in quantity of hides in the current year.

Traditionally 50 percent of the hides that the tanneries procure each year, come from the Eid festival. They process around 220 million sq. feet per annum, of which around 100 million sq. feet is bought around Eid.

The last two months have been good for the tanneries as they have been able to clear their inventory built over the last few months due to a resurgence of orders from China and Hong Kong and have been able to offset the low demand from domestic manufacturers.

Leather export fell by 24.55 percent in the July-September period of the current fiscal year to touch US $45.46 million, while export of footwear during the quarter reached $56.22 million, down 2.95 percent. The main buyers of its leather goods are the countries of the European Union and Far East countries.

Prices of finished leather and products fell by an tremendous 30-40 percent in the last one year, which has resulted in heavy losses for the tanneries, following which prices of raw hide too followed suit and declined from Tk 70 per sq. feet in 2007 to Tk 35 per sq. feet in 2009.

Fibre2fashion News Desk - India

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