V.M. Khaleelur Rahman
Demand continues for tanned goat skins as usual in the Chennai leather market but availability is limited as many small tanners have either curtailed or stopped their productions due to abnormal rise in prices of raw skins everywhere in the country.
Raw goat skins are sold at around Rs.250 in different centres and in places like Miraj prices are up to Rs.300 depending on the quality and selection. Small tanners are finding it very difficult to operate and feel that a dangerous situation is prevailing in the leather market.
Exporters of leather products continue to buy tanned goat skins at either unchanged or somewhat higher prices. It is learnt that some tanners are able to sell 3/5 and 4/7 sq. ft. grain selection ABC grade at around Rs.85, Suede selection ABC at around Rs.75, All Suede selection at around Rs.70 and All Suede up to Heel grip at around Rs.65. Even the prices of Lining TR1/2/3 have gone up to Rs.46/44/42 and Rejection up to Rs. 32 per sq. ft. The prices of wet blue goat skins are also ruling high almost at around the above prices.
As far as export business is concerned, there is limited demand and overseas customers are not very particular in having contracts at higher prices. Exporters are worried about this state of affairs. They are not able to get their reasonable asking prices from overseas customers. However some big exporters are reported to be having regular business but in reduced quantities.
Quotations of exporters are at around the following prices:
The following DGCI & S report shows that there is a decline of 2.16% in terms of US dollar and an increase of 14.75% in terms of Indian Rupee in the export of leather and leather products during the period April-November 2012 as against the performance during the same period in 2011.
(Value in Million Rs)
VMK in Indain Leather, February 2013 issue)