Kolkata, Feb. 18 There might be a 20-25 per cent dip in exports of leather goods from the eastern part of the country, particularly from Kolkata, because of the global economic slowdown affecting demand for leather goods across major markets, according to Mr Paresh Rajda, Chairman, Council for Leather Exports (Eastern Region).
Leather goods exports from the eastern region grew by about 12 per cent at Rs 2,800 crore in 2008-09 over 2007-08.
“We usually receive orders almost six months in advance, which is why we had despatched the shipments before the recession had set in last year. However, beginning October 2009 there was some impact and the arrival of fresh orders started drying up,” Mr Rajda told newspersons on the sidelines of a press conference to announce the 15 {+t} {+h} International Leather Goods Fair here on Thursday.
Leather goods (i.e. bags and wallets) accounted for almost 53 per cent of the total exports at Rs 1,500 crore in 2008-09, leather gloves accounted for about 35 per cent at Rs 1,000 crore while leather jackets and garments comprised about Rs 300 crore. “We witnessed a phenomenal growth in leather gloves exports last year, but this year exports might not be so good,” he said.
European Union forms one of the largest markets for leather goods exports, he said and added, “We also made inroads into the US and Australia and we hope the demand to pick up.”
The 15 {+t} {+h} edition of the International Leather Goods Fair, which is a B2B (business-to-business) event, will be inaugurated by Dr Subas Pani, Chairman and Managing Director, India Trade Promotion Organisation (ITPO), at Netaji Indoor Stadium on Friday.
The three-day fair would be organised by ITPO in collaboration with Council for Leather Exports, Indian Leather Products Association and supported by the state government.
Close to 66 manufacturers and exporters of small leather goods and allied products plan to take part in the event.
Source : Business Line