Leather exporters expect supply of hides to improve

The leather industry has hailed the Budget proposal of setting up of a National Cattle Development Board saying it expected to improve the quality and enhance the availability of skins and hides in the country.

S S Kumar, chairman of Council of Leather Export (CLE), the apex body for promotion of leather goods in abroad, said the effort would help in achieving country's target of $ 4 billion export by 2010.

"This is a welcome step by the government. We need to step up availability of raw leather to meet the domestic production of $ 8 billion and export of $ 4 billion in next six years," he said. Export of leather and leather goods was at $ 2 billion at present.

CLE would also like immediate release of the Rs 400 crore fund for improvement of leather industry approved by the Planning Commission under the 10th Five Year Plan. No funds have been disbursed for two years now.

Mukund Kulkarni, chairman of Indian Leather Products Association (ILPA) was, however, more guarded. "We are yet to receive the fine print of the proposal. How much material impact it will have in improving quality and availability would depend on the implementation of the proposal," he said.

Current demand for leather was around 1.8 billion square foot in India. Of this, 60 per cent of raw hide and skin came from slaughter, 30 per cent from fallen animals and 10 per cent through imports.

Kulkarni said the bigger challenge was in moving up the value chain through better tanning.

"India does not have large production units or ranches. It is very difficult to implement a quality improvement scheme owing to the presence of large number of small cattle owners. But better tanning processes can improve quality and it will be easier to monitor the process," he noted.