Plea to scrap export duty on EI leather

By Our Special Correspondent

CHENNAI, NOV. 26. The Tamilnadu Leather Tanners, Exporters and Importers Association (TALTEIA) has urged the Union Government to abolish the export duty on EI (East India) tanned leather and crust leather.

In a statement, the association pointed out that exports of EI and crust leathers were allowed this year after a ban which had been in effect for a decade. However, the export of the items, made mostly by small tanners with limited resources, would not pick up because of the imposition of export duty varying from 15 to 60 per cent, while the neighbouring countries did not impose any duty. The association said the earlier policy of discouraging less value-added exports had led to heavy accumulation of stocks and fall in prices of semi-finished leathers since domestic manufacturers of leather products did not lift the entire raw material available. The ban had also prevented foreign designers from developing fashions based on Indian leather, which ultimately affected the prospects of Indian leather products exporters too.

In view of the potential foreign exchange earning of Rs. 2,000 crores from overseas demand for EI and crust leathers, increasing import of raw material by Indian product manufacturers and exporters and the heavy losses incurred by small tanners, the duty on exports of EI and crust leather should be removed, TALTEIA said.

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Section  : Business
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