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Leather trade hit by port stir

K. Asadullah Basha

THE number of transactions in the leather market declined last weak owing to financial crunch arising out of the impact of the 15-day-long strike at the Chennai port. The strike has since been called off but during the strike, the exporters could not neg otiate their bills as their consignments could not get through and most of them struggled to meet even their weekly expenses - both at the tanneries and factories.

Though there is a talk of boom in the market, the prevailing trend, however, is not healthy. At the same time, experts feel most of those in the trade are not properly analysing the market situation and working out accordingly. This was landing them in t rouble. Not only that, due to unethical practices and unhealthy competition indulged in by some manufacturer-exporters (most of them fly-by-night elements), the whole trade has been affected.

According to pundits in the industry, a good demand for all kind of articles in leather and leather products still exists. However, the price resistance is expected to continue for the next six months to one year.

Meanwhile, due to the price increase in domestic raw hides and skins at various centres and also because of buyers' requirements, some leading exporters have imported a lot of cow, sheep and goat skins in pickled, wet blue and crust stage. They have also imported different kinds of finished leather and leather products from various countries in recent months at prices a bit more or less than those prevailing now.

Wet blue lamb skins from Germany have been imported between $85-$105 and $140-170 per dozen skins. Likewise, samples of kid skins have been imported between $75 and $90 per dozen skins depending on their grade and size. French herbes pickled lamb skins a nd Spanish entrefino table run selection have been imported at $22-25 per dozen skins from France. Wet blue goat skins from Italy have been imported at $2.50-5 per skin.

Cow crust leather has been imported between $3-3.50, $2-2.50 and $1-1.50 per sq ft from countries such as Britain, Argentina, Australia, Canada and Italy. Bovine finished leather has been imported at $3-6 per sq ft. Buffalo crust leather has been import ed at $0.75-1.05 per sq ft.

No considerable change in the domestic raw and finished leather prices were reported. Likewise on the export front also, no considerable change in existing price was reported for different kind of articles.