Date:11/10/2004 URL: http://www.thehindubusinessline.com/2004/10/11/stories/2004101101990300.htm

Back Exporters concern at tanneries' inefficiency

Our Bureau

Chennai , Oct. 10

LEATHER exporters are concerned over the inefficiency in the tanning sector as it keeps production costs high, even as exports crossed $2 billion for the first time last fiscal.

"The low productivity norms prevailing in the tanning sector is one of the causes for the high cost of production," said Mr T. Rafeeq Ahmed, Chairman of Indian Finished Leather Manufacturers & Exporters Association, at their annual general meeting last week.

Mr Ahmed expressed his concern in the backdrop of optimism about the future. Leather exports in 2003-04 were $2.09 billion ($1.87 billion), and he said future prospects were bright.

Mr Ahmed said tanneries need to face up to two challenges: modernisation of plants and controlling their impact on the environment.