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Demand continues for leather articles

K. Asadullah Basha

DEMAND continued for all kinds of leather articles last week in the market but the availability was restricted.

Meanwhile, rumours were agog that an export duty of 15 per cent will be imposed on the export of finished leather and 30 per cent on the export of E.I. tanned leather. This caused anger and anguish among both the `fully' finished leather and EI tanned le ather exporters. It was reported that leading exporters of finished leather had air-dashed to Delhi to plead with the concerned ministries of the Union Government to not impose any duty on finished leather export. EI tanned leather exporters, on the othe r hand, are planning to protest such a levy. A clear picture is expected to emerge in coming weeks only.

It is feared that such `tinkering' in the Exim Policy, leather and leather products' export from the country will suffer severely and overseas buyers may not be interested in doing business in the long term. Not only that, even overseas investments in th e leather sector could also be affected, experts fear.

Coming back to the leather trend, after quiet some time, demand for sheep black nappa was noted. Buyers were prepared to pay 0.15 to 0.25 paise more per sq dcm over the existing price levels. In goat skins, too, demand for grain, garment suede, shoe sued , heel grip, mesh and lining was reported. The prices increased by Rs 0.50 to Re 1 per sq ft.

While the season for raw cow, buffalo hides and calf skins is yet to begin in full swing, the prices have increased exorbitantly at different raw centres due to panic purchases by Kanpur, Calcutta and Chennai-based tanners and exporters. Arrivals of cow hides, on the other hand, is stated to be less, prices have gone up somewhere between Rs 600-1200 depending on the pelt, selection, area and thickness of the leather.

Buffalo hides were reported to be sold between Rs 33 and Rs 35 per kg and some extra super fine quality was sold even at Rs 40 a kg. On the export front, while no considerable change in demand was reported, overseas buyers were reported to be in holiday mood. The holidays are set to begin from the first week August.