The Hindu Business Line : Leather industry sees 20% drop in output

The slowdown in the West has affected the exporters’ largest markets in the US and Europe. The industry and governments will have to work together to address the concerns.

Our Bureau

Chennai, Jan. 28 The leather industry is looking at a 20 per cent drop in output following a slowdown in the demand in international markets, according to industry representatives.

The Central and State Governments should announce a package of measures to support the industry which is among the most employment intensive, they say.

Addressing reporters on Lerig 2009, the annual gathering of leather industry and research institutes to be inaugurated on Thursday, Mr Habib Hussain, Chairman, Council for Leather Exports, said the theme this year, ‘Challenges and Opportunities in Leather Sector (COILS), was appropriate in the present economic conditions, with the industry caught up in an environment beyond its control.

The slowdown in the West has affected the exporters’ largest markets in the US and Europe. The industry and governments will have to work together to address the concerns.

Mr Zackria Sait, Chairman, Indian Finished Leather Manufacturers and Exporters Association, said the early signs of the drop in production and demand are apparent in the tanning industry which is now working at about half its capacity. Mr Rafeeque Ahmed, Chairman, Federation of Indian Chamber of Commerce and Industry – Tamil Nadu Council, said the Indian leather export industry is concentrated in the South, especially in Tamil Nadu. Over 2-3 lakh jobs are under threat as export demand goes down and the State and Central Governments have to wake up to this concern.

The industry is pushing for support to tackle the slowdown, but the State Government is yet to wake up to the threat of job losses. Banks too see export-dependent sectors as vulnerable, he said.

The industry has been upgrading itself to meet the challenges of the market through modernisation and expansion, he said.

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