Chennai Leather Market - December 2016

CHENNAI LEATHER MARKET

V.M. Khaleelur Rahman

Chennai leather market is very dull and the transactions that took place after the ban on the old notes of Rs.500 and Rs.1000 denominations are very limited. This is the case not only here in Chennai but throughout the country. Undoubtedly the leather industry is feeling the heat of the demonetisation. Industrialists say that it has affected the leather industry badly. They are not able to arrange money for the purchase of raw materials, payment of weekly wages, lorry freights and other daily expenses. The fact is that the well intended but ill planned ban is facing implementation problems.

Mr. M. Rafeeque Ahmed, Chairman, Council for Leather Exports has said that the government should relax the cash withdrawal limit from accounts as this is accounted for and can be captured by the Income Tax Department. He has further said that demonetisation is a good idea but it is not being implemented without affecting the public and trading community.

Mr. Faiyaz Ahmed, Honorary Secretary, Ambur Tanners Association, has said that “non-availability of new currencies is the main problem and that even the routine banking works such as cheque clearance and electronic transfer of money are affected as bank officials are busy with cash exchange”.

Mr. N. Sundar, District Secretary of North Arcot District Tannery Workers Union, has said that about  1.5 lakh workers employed in leather and footwear industries in and around Ambur are unable to get cash for urgent needs and are running around for money”.

There are reports that the leather industry in places like Agra, Kanpur and Delhi are in a difficult situation because of the cash crunch.

QUOTATIONS OF TANNERS ARE AS FOLLOWS:

TANNED GOAT SKINS

Grain Selection

4/7 sq. ft. Run Rs.75 and V/IF/LIF combined Rs.58

5/8 sq. ft. Run Rs.80 and V/IF/LIF combined Rs.65

Suede Selection:

3/6 sq. ft. All Suede Rs.46 per sq. ft.

5/8 sq. ft. All Suede Rs.49 per sq. ft.

Lining Selection

5/7 sq. ft. Better Lining Rs.43 per sq. ft.

Heel Grip:

4/6 sq. ft. Rs.28 per sq. ft.

5/8 sq. ft. Rs.30 per sq. ft.

Mesh:

4/7 sq. ft. Rs.27 per sq. ft.

Rejection:

4 sq. ft. and up Rs.20 per sq. ft.

Langda:

3 sq. ft. and up Rs. 15 per sq. ft.

EXPORT OFFERS ARE AS FOLLOWS:

F/C sheep leather

All Suede 4/7 sq. ft. JY 200 and 5/7 sq. ft. JY 210 per sq. ft. C&F

Rejection Suede 4/7 sq. ft. JY 105 and 5/7 sq. ft. JY 115 per sq. ft. C&F

                                      S/C OR F/C GOAT LEATHERS

Material	Size/sq. ft.	Substance	Selection	Price US$ per sq. ft. C&F
Goat upper leather	4/7	0.6/0.8 mm	ABC/DE	2.00/1.50
Goat milled leather	4/7	0.6/0.8 mm	TR-1/TR-2/TR-3	1.60/1.50/1.40
Goat suede leather	4/7 5/8	0.6/0.8 mm 0.6/0.8 mm	All Suede	1.90 2.00
Goat lining leather	4/7	0.5/0.7 mm	TR-1/2/3 combined	1.50
	6/9	0.6/0.8 mm	TR-1/2/3 Combined	1.60

                                                       

                                   F/C SHEEP LEATHERS

Material	Size/sq.ft.	Substance	Selection	Price US$ per sq. ft. C&F
Sheep Cabretta leather	4/7	0.6/0.8 mm	ABC	2.00
Sheep Cabretta leather	6/9	0.8/1.00 mm	ABC	2.10
Sheep lining leather	4/7 5/9	0.5/0.7 mm 0.6/0.8 mm	TR-1/2/3 TR-1/2/3	1.50 1.60

There is very little demand for sheep leathers. Tanners who are doing this item are the worst sufferers.

(Writer’s e-mail id: vmk1234@yahoo.com)