Plans afoot to organise Kolhapuri chappal trade but it's a slow start

Though the Kolhapuri chappal trade is robust, the industry remains largely unorganised and finds it challenging to meet demand

In the heart of Kolhapur, a narrow street bustles with activity. This is the famous Chappal Lane, where shops on either side vie for attention with their wares -- the iconic Kolhapuri chappals, which exemplify the region's rich heritage. 
 

Approximately 4,000 retailers in the district sell these leather slippers. This trade, steeped in tradition, has been chosen by the government for the One District One Product Scheme (ODOP).
 

These shops, many over five decades old, are a testament to the enduring legacy of the trade, passed down through generations. Today, the third or fourth generation helms many of these establishments. Over 10,000 people in the district are involved in the Rs 200 crore Kolhapuri Chappal market, with exports worth Rs 25-50 crore.
 

The makers of Kolhapuri chappals share a similar story. The craft, honed over the years, has been passed down to their descendants. Most shops source their chappals from a select group of craftsmen or employ some of them directly. 

 

Take, for instance, Navyug, a Kolhapuri chappal store run by 32-year-old Aditya Rajendra Kadam. Employing 12 people at the store and six craftsmen at a small factory, Kadam's operation is a microcosm of the industry. “The government gives tools (to make chappals) to people in villages, but we don’t need them. Also, business is doing well for us,” Kadam said.

 

Pritam Malekar, a 35-year-old fourth-generation businessman, runs another seven-decade-old store., which sources chappals from around 8-10 vendors. “Manufacturers don’t have an issue concerning loans or subsidies from the government,” Malekar said. He also mentioned that the current government “checks in on us to see if we are facing any issue…  It is a big deal.” 
 

“We run a small shop but to see the government at least come and hear our issues is a great deal for us,” he further said, adding that this was the case even during the Covid pandemic.
 

Though the Kolhapuri chappal trade is healthy, the industry is largely unorganised and finds it challenging to meet the demand. Hence, efforts are afoot to organise all those involved with the trade in a cluster.
 

“The Kolhapuri chappal industry is unorganised and fragmented. Karigars (craftsmen) here work at a very small scale,” said Dhananjay Mahadik, a Rajya Sabha MP from Maharashtra. 

 

Stressing the need for an organised Kolhapuri chappal industry, he explained: “There are two kinds of chappals: One is the authentic handmade and the other is machine-made, but they are difficult to differentiate.”  He said while there is a strong demand for handmade Kolhapuri chappals, it is not easy to meet it. Hence, machine-made slippers, which are cheaper to make over a period, are selling more.
 

Mahadik argued these challenges could easily be overcome by organising a cluster and patenting the Kolhapuri chappal. “We are working towards building a cluster and bringing these karigars under one roof and bringing them together for all the major work that goes into making a chappal, such as cutting and tanning. The investment towards the cluster is done by the central government,” Mahadik said. “The cluster has already been sanctioned but there is a slight delay. But once the cluster is made, the industry will get organised. The government will also help them. However, this will take around 5-10 years.” 
 

The industry also is facing competition from neighbouring states, where traders are selling machine-made footwear as “Kolhapuri chappals”. Another challenge is that the younger generation is not keen to join this trade and is looking towards more lucrative sectors.  “We will have to take care of these artisans. We had even tried to get a patent for Kolhapuri chappals, but getting a patent isn't easy. But once we get the patent, the entire industry will get organised,” Mahadik said.
 

Lalit Gandhi, president of Maharashtra Chamber of Commerce, Industry and Agriculture, said: “Unfortunately, due to it being unorganised, the market gets impacted. There are other states which also produce similar footwear and call them Kolhapuri chappals. Those aren’t authentic.” 
 

He explained that though local vendors and manufacturers work at a very small scale and that the government has been trying to promote a cluster-based development for the industry, “sellers and manufacturers are also not able to come to a unanimous decision”. 

 

“We are trying to get all these players on the same page,” he said.
 

While there is a loan scheme by the Leather Industries Development Corporation under the Government of Maharashtra, it isn’t helping the industry much, said Gandhi. Under this scheme to uplift leather craftsmen and others in the trade, “50 per cent amount is being given as a subsidy on a maximum loan amount of Rs 50,000. The subsidy is subject to a maximum limit of Rs 10,000”.
 

But, Gandhi said, there are not many takers of this subsidy from the government as it is a highly unorganised sector. He argued that the need of the hour is a depot for raw materials and that can be easily addressed only by a cluster.