The Hindu Business Line : East India leather: Tiruchi export body plea

Tiruchi, Dec. 31 The Tiruchi Tanners’ Association has sought facilitation for exporting East India leather (a type of semi-processed leather) through removal of duties.

In a memorandum submitted to the Union Ministry of Commerce and Industries, Mr V.S.M. Varis Mohideen, Secretary, Tiruchi Tanners’ Association, said the capacity of E.I. tanning was below five per cent of the total capacity of the leather industry in India.

Though the Ministry of Commerce and Industry permitted export of E.I. leather in January 2000, imposition of 15 per cent export duty has crippled the industry.

The current position of E.I. tanneries was precarious after closure of the leather garment industry from 1990 to 2000. E.I. tanneries have become sick and exporters of finished leather and leather product manufactures prefer to import raw skin and other intermediate leather-like crust among others after the government permitted free import of raw skins and leathers in any form without duty.

Underutilised capacity

As a consequence, the capacity of the E.I. tanning industries in the country is underutilised and the stocks have accumulated, the memorandum said.

Not much investment and expansion has taken place in leather industry in Tamil Nadu after 1990. E.I. tanners face difficulties in upgrading effluent treatment plants adopting Membrane Bio Reactor and reverse osmosis technology inspite of 50 per cent subsidy offered by the Government.

Nearly 50 per cent of tanning capacity in Tiruchi and Dindigul have been lost due to closure of tanneries on account of non-compliance of various pollution control measures as ordered by Green Bench of Madras High Court and TNPCB’s minimum norms and also due to Government fixing unreasonable norms for finished leather export and export duty on E.I. leather, said Mr Mohideen.

Notwithstanding the hurdles, there are opportunities in the leather industry on account of the fixation of a leather export target of Rs 30,000 crore from the current extent of Rs 13,000 crore.

More Stories on : Leather | Exports & Imports | Tamil Nadu

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